Please wait







zd_blue.jpg
ZIFF DAVIS, INC.




Supplemental Financial Data
May 9, 2025



360 Park Avenue S, New York, New York 10010

























CONTACT:

Alan Steier
Investor Relations
Ziff Davis, Inc.
investor@ziffdavis.com

Rebecca Wright
Corporate Communications
Ziff Davis, Inc.
press@ziffdavis.com


















SEGMENT REALIGNMENT

Following changes to our internal reporting structure, the Company concluded that it has five operating segments, which are now presented as the following five reportable segments: 1) Technology & Shopping, 2) Gaming & Entertainment, 3) Health & Wellness, 4) Connectivity, and 5) Cybersecurity & Martech. Prior period segment information is presented on a comparable basis to confirm to this new segment presentation with no effect on previously reported consolidated results.
2


The following tables set forth Revenues (1) by quarter and by reportable segment (in thousands):
2023
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & MartechCorporateTotal
Q1 2023$69,942 $34,573 $78,189 $51,422 $73,016 $— $307,142 
Q2 202376,675 39,995 86,666 49,484 73,196 — 326,016 
Q3 202378,718 45,023 90,619 53,574 73,051 — 340,985 
Q4 2023105,222 49,230 106,449 57,038 71,946 — 389,885 
Total Revenues$330,557 $168,821 $361,923 $211,518 $291,209 $— $1,364,028 


2024
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & MartechCorporateTotal
Q1 2024$69,267 $36,640 $79,978 $53,148 $75,452 $— $314,485 
Q2 202472,567 42,981 85,988 50,281 68,983 — 320,800 
Q3 202487,126 49,714 90,771 55,943 70,026 — 353,580 
Q4 2024132,922 50,941 105,671 54,248 69,041 — 412,823 
Total Revenues$361,882 $180,276 $362,408 $213,620 $283,502 $— $1,401,688 
(1) Figures above are net of inter-segment revenues.

3


The following tables set forth Adjusted EBITDA by quarter and by reportable segment (in thousands):
2023
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Q1 2023$14,201 $11,183 $26,977 $27,098 $25,086 $(10,212)$94,333 
Q2 202319,060 15,310 31,234 23,487 26,605 (9,020)106,676 
Q3 202317,585 19,528 33,757 26,368 24,438 (7,942)113,734 
Q4 202349,822 24,845 46,834 30,265 25,445 (9,645)167,566 
Total Adjusted EBITDA$100,668 $70,866 $138,802 $107,218 $101,574 $(36,819)$482,309 


2024
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Q1 2024$14,624 $13,429 $26,198 $26,946 $29,643 $(10,089)$100,751 
Q2 202417,345 12,282 30,115 24,160 22,165 (9,803)96,264 
Q3 2024
31,170 18,193 32,240 29,463 24,620 (10,995)124,691 
Q4 202458,253 24,720 46,827 29,522 22,360 (9,880)171,802 
Total Adjusted EBITDA$121,392 $68,624 $135,380 $110,091 $98,788 $(40,767)$493,508 
(1) Corporate includes certain unallocated overhead costs that were historically presented within the Digital Media reportable segment.
4




















RECONCILIATION
TO NON-GAAP MEASURE
5

Non-GAAP Financial Measure
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use Adjusted EBITDA as one of the non-GAAP financial measures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use this non-GAAP financial measure for financial and operational decision making and as means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results or, in certain cases, may be non-cash in nature. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitate management’s internal comparisons to our historical performance and liquidity. We believe this non-GAAP financial measure is useful to investors both because (1) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making, (2) it is used to determine the amount of annual incentive compensation paid to our named executive officers, and (3) it is used by the analyst community to help them analyze the health of our business.
This non-GAAP financial measure is not measure presented in accordance with GAAP, and our use of this term may vary from that of other companies, limiting its usefulness for comparison purposes. This non-GAAP financial measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP financial measure has limitations in that it does not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.
Non-GAAP financial measure excludes the certain items listed below. We believe that excluding these items from the non-GAAP measure facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measure provides meaningful supplemental information regarding operational performance. We further believe this measure is useful to investors in that they allow for greater transparency of certain line items in the Company’s financial statements.
Adjusted EBITDA is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain items including, but not limited to:
•Interest expense, net. Interest expense is generated primarily from interest due on outstanding debt, partially offset by interest income generated from the interest earned on cash, cash equivalents, and investments;
•(Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this (gain) loss does not represent recurring core business operating results of the Company;
•(Gain) loss on sale of businesses. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company;
•(Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company;
•Other (income) loss, net. This income or expense relates to other non-operating items and does not represent recurring core business operating results of the Company;
•Income tax (benefit) expense. This benefit or expense depends on the pre-tax loss or income of the Company, statutory tax rates, tax regulations, and different tax rates in various jurisdictions in which the Company operates and which the Company does not have the control over;
•(Income) loss from equity method investment, net of tax. This is a non-cash income or expense as it relates primarily to our investment in OCV Fund I, LP (the “OCV Fund”). We believe that gain or loss resulting from our equity method investment does not represent core business operating results of the Company;
•Depreciation and amortization. This is a non-cash expense at it relates to use and associated reduction in value of certain assets including equipment, fixtures, and certain capitalized internal-use software and website development costs, and identifiable definite-lived intangible assets of the acquired businesses;
•Share-based compensation. This is a non-cash expense as it relates to awards granted under the various share-based incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base;
•Acquisition, integration, and other costs. This includes adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance, third-party debt modification costs and legal settlements. These expenses do not represent core business operating results of the Company;
•Disposal related costs. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company;
6

•Lease asset impairments and other charges. These expenses are incurred in connection with impaired right-of-use (“ROU”) assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and
•Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company.
7

ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
    
The following tables set forth Revenues and a reconciliation of Income (loss) from operations to Adjusted EBITDA by segment (in thousands):
Three months ended March 31, 2023
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$69,942 $34,573 $78,189 $51,422 $73,016 $— $307,142 
(Loss) income from operations$(8,488)$7,781 $10,154 $20,215 $11,688 $(15,035)$26,315 
Depreciation and amortization20,897 2,308 13,360 6,255 11,630 173 54,623 
Share-based compensation654 203 1,144 518 1,572 4,311 8,402 
Acquisition, integration, and other costs
311 891 1,846 110 91 276 3,525 
Disposal related costs— — — — — 149 149 
Lease asset impairments and other charges827 — 473 — 105 (86)1,319 
Adjusted EBITDA$14,201 $11,183 $26,977 $27,098 $25,086 $(10,212)$94,333 
Three months ended June 30, 2023
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$76,675 $39,995 $86,666 $49,484 $73,196 $— $326,016 
(Loss) income from operations$(3,809)$12,270 $13,322 $15,814 $13,565 $(12,267)$38,895 
Income from equity method investment, net of tax
— — — — — (1,500)(1,500)
Depreciation and amortization21,573 2,281 14,426 6,731 11,590 255 56,856 
Share-based compensation1,079 257 1,388 752 1,283 4,458 9,217 
Acquisition, integration, and other costs
466 502 2,098 190 113 — 3,369 
Disposal related costs— — — — — 60 60 
Lease asset impairments and other charges(249)— — — 54 (26)(221)
Adjusted EBITDA$19,060 $15,310 $31,234 $23,487 $26,605 $(9,020)$106,676 
8

Three months ended September 30, 2023
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$78,718 $45,023 $90,619 $53,574 $73,051 $— $340,985 
(Loss) income from operations$(63,822)$15,101 $15,930 $17,281 $12,527 $(10,336)$(13,319)
Depreciation and amortization21,232 3,712 14,010 7,351 10,941 (1,392)55,854 
Share-based compensation2,207 218 1,175 325 399 2,450 6,774 
Acquisition, integration, and other costs
(439)497 2,639 1,411 263 86 4,457 
Disposal related costs453 — — — 202 978 1,633 
Lease asset impairments and other charges1,104 — 3 — 106 272 1,485 
Goodwill impairment
56,850 — — — — — 56,850 
Adjusted EBITDA$17,585 $19,528 $33,757 $26,368 $24,438 $(7,942)$113,734 
Three months ended December 31, 2023
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$105,222 $49,230 $106,449 $57,038 $71,946 $— $389,885 
Income (loss) from operations
$25,621 $22,147 $24,169 $17,281 $5,430 $(13,928)$80,720 
Depreciation and amortization19,569 2,067 18,074 11,456 18,457 10 69,633 
Share-based compensation1,001 80 1,136 419 932 3,959 7,527 
Acquisition, integration, and other costs
4,114 551 3,421 1,109 420 34 9,649 
Disposal related costs180 — — — — 195 375 
Lease asset impairments and other charges(663)— 34 — 206 85 (338)
Adjusted EBITDA$49,822 $24,845 $46,834 $30,265 $25,445 $(9,645)$167,566 
Figures above are net of inter-segment revenues and operating costs and expenses.
(1) Corporate includes certain unallocated overhead costs that were historically presented within the Digital Media reportable segment.

9

ZIFF DAVIS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
    
The following tables set forth Revenues and a reconciliation of Income (loss) from operations to Adjusted EBITDA by segment (in thousands):
Three months ended March 31, 2024
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$69,267 $36,640 $79,978 $53,148 $75,452 $— $314,485 
(Loss) income from operations$(6,635)$10,515 $8,600 $19,359 $19,428 $(15,406)$35,861 
Depreciation and amortization17,914 2,392 13,399 7,001 7,740 7 48,453 
Share-based compensation1,178 188 1,341 633 1,134 4,398 8,872 
Acquisition, integration, and other costs
1,663 334 2,858 (47)864 594 6,266 
Disposal related costs366 — — — — 130 496 
Lease asset impairments and other charges138 — — — 477 188 803 
Adjusted EBITDA$14,624 $13,429 $26,198 $26,946 $29,643 $(10,089)$100,751 
Three months ended June 30, 2024
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$72,567 $42,981 $85,988 $50,281 $68,983 $— $320,800 
(Loss) income from operations$(8,067)$8,198 $13,302 $21,702 $11,547 $(18,113)$28,569 
Depreciation and amortization19,863 2,841 13,013 7,617 8,800 7 52,141 
Share-based compensation1,625 327 1,509 764 1,222 6,153 11,600 
Acquisition, integration, and other costs
4,086 916 2,276 (5,923)471 2,011 3,837 
Disposal related costs— — — — 20 57 77 
Lease asset impairments and other charges(162)— 15 — 105 82 40 
Adjusted EBITDA$17,345 $12,282 $30,115 $24,160 $22,165 $(9,803)$96,264 
10

Three months ended September 30, 2024
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$87,126 $49,714 $90,771 $55,943 $70,026 $— $353,580 
(Loss) income from operations$(78,615)$15,044 $18,247 $20,813 $14,891 $(19,684)$(29,304)
Depreciation and amortization20,334 2,631 12,505 7,867 7,980 34 51,351 
Share-based compensation1,047 365 1,343 623 1,178 5,605 10,161 
Acquisition, integration, and other costs
3,095 154 145 160 473 2,678 6,705 
Disposal related costs(390)— — — — 368 (22)
Lease asset impairments and other charges426 (1)— — 98 4 527 
Goodwill impairment
85,273 — — — — — 85,273 
Adjusted EBITDA$31,170 $18,193 $32,240 $29,463 $24,620 $(10,995)$124,691 
Three months ended December 31, 2024
Technology & ShoppingGaming & EntertainmentHealth & WellnessConnectivityCybersecurity & Martech
Corporate (1)
Total
Revenues$132,922 $50,941 $105,671 $54,248 $69,041 $— $412,823 
Income (loss) from operations
$22,245 $20,244 $27,058 $17,500 $9,095 $(17,620)$78,522 
Depreciation and amortization25,313 2,869 13,849 9,397 8,505 38 59,971 
Share-based compensation1,164 190 1,411 638 1,097 5,782 10,282 
Acquisition, integration, and other costs
9,710 1,323 4,509 1,987 3,587 2,270 23,386 
Disposal related costs— — — — — (350)(350)
Lease asset impairments and other charges(179)94 — — 76 — (9)
Adjusted EBITDA$58,253 $24,720 $46,827 $29,522 $22,360 $(9,880)$171,802 
Figures above are net of inter-segment revenues and operating costs and expenses.
(1) Corporate includes certain unallocated overhead costs that were historically presented within the Digital Media reportable segment.

11