Financial News

Ziff Davis Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Guidance

Ziff Davis, Inc. (NASDAQ: ZD) (“Ziff Davis” or “the Company”) today reported unaudited financial results for the fourth quarter and year ended December 31, 2023.

“We have a positive and encouraging outlook on 2024 that reflects a return to healthy growth rates at the company,” said Vivek Shah, Chief Executive Officer of Ziff Davis. “At the same time, we are well-positioned to act with conviction and decisiveness in the M&A market to further grow our business."

FOURTH QUARTER 2023 RESULTS

  • Q4 2023 quarterly revenues decreased 1.7% to $389.9 million compared to $396.7 million for Q4 2022.
  • Income from operations decreased 13.6% to $80.7 million compared to $93.5 million for Q4 2022.
  • Net income from continuing operations(1) decreased 8.3% to $63.4 million compared to $69.2 million for Q4 2022.
  • Net income(1) decreased 6.1% to $63.4 million compared to $67.5 million for Q4 2022.
  • Net income per diluted share from continuing operations(1) decreased 5.8% to $1.29 in Q4 2023 compared to $1.37 for Q4 2022.
  • Adjusted EBITDA(2) for the quarter decreased 0.4% to $167.6 million compared to $168.3 million for Q4 2022.
  • Adjusted net income from continuing operations(2) increased 1.0% to $107.0 million compared to $106.0 million for Q4 2022.
  • Adjusted net income per diluted share from continuing operations(1)(2) (or “Adjusted diluted EPS”) for the quarter increased 3.1% to $2.33 compared to $2.26 for Q4 2022.
  • Net cash provided by operating activities from continuing and discontinued operations was $92.1 million in Q4 2023 compared to $43.2 million in Q4 2022. Free cash flow(2) was $65.9 million in Q4 2023 compared to $17.8 million in Q4 2022.
  • Ziff Davis ended the quarter with approximately $905.6 million in cash, cash equivalents, and investments. No funds were deployed in Q4 2023 for current year acquisitions.

FULL YEAR 2023 RESULTS

  • 2023 yearly revenues decreased 1.9% to $1.36 billion compared to $1.39 billion for 2022.
  • Income from operations decreased 33.3% to $132.6 million compared to $198.9 million for 2022 partially due to the recognition of a $56.9 million goodwill impairment during 2023, which exceeded the recognition of a $27.4 million goodwill impairment during 2022.
  • Net income from continuing operations(1) decreased 36.6% to $41.5 million compared to $65.5 million for 2022 primarily due to the recognition of a $56.9 million goodwill impairment during 2023, which exceeded the net impact of a $20.7 million goodwill impairment, net of tax, and a $7.7 million gain on extinguishment of debt, net of tax, both of which were recognized during 2022.
  • Net income(1) decreased 35.0% to $41.5 million compared to $63.8 million for 2022.
  • Net income per diluted share from continuing operations(1) decreased 36.0% to $0.89 in 2023 compared to $1.39 for 2022.
  • Adjusted EBITDA(2) for the year decreased 4.9% to $482.3 million compared to $507.2 million for 2022.
  • Adjusted net income from continuing operations(2) decreased 8.1% to $287.4 million compared to $312.6 million for 2022.
  • Adjusted diluted EPS(1)(2) for the year decreased 6.9% to $6.19 compared to $6.65 for 2022.
  • Net cash provided by operating activities was $320.0 million in 2023 compared to $336.4 million in 2022. Free cash flow(2) was $211.2 million in 2023 compared to $230.3 million in 2022.
  • Ziff Davis deployed approximately $108.5 million related to share repurchases in 2023.

The following table reflects results for the three month and year ended December 31, 2023 and 2022, respectively (in millions, except per share amounts).

(Unaudited)

Three months ended

December 31,

% Change

Year ended

December 31,

% Change

2023

2022

2023

2022

Revenues

 

 

 

 

 

 

Digital Media

$317.9

$321.7

(1.2)%

$1,072.8

$1,078.4

(0.5)%

Cybersecurity and Martech

$72.0

$75.0

(4.0)%

$291.2

$312.6

(6.8)%

Total revenues(3)

$389.9

$396.7

(1.7)%

$1,364.0

$1,391.0

(1.9)%

Income from operations

$80.7

$93.5

(13.6)%

$132.6

$198.9

(33.3)%

Operating income margin

20.7%

23.6%

(2.9)%

9.7%

14.3%

(4.6)%

Net income from continuing operations

$63.4

$69.2

(8.3)%

$41.5

$65.5

(36.6)%

Net income

$63.4

$67.5

(6.1)%

$41.5

$63.8

(35.0)%

Net income per diluted share from continuing operations(1)

$1.29

$1.37

(5.8)%

$0.89

$1.39

(36.0)%

Adjusted EBITDA(2)

$167.6

$168.3

(0.4)%

$482.3

$507.2

(4.9)%

Adjusted EBITDA margin(2)

43.0%

42.4%

0.6%

35.4%

36.5%

(1.1)%

Adjusted net income from continuing operations(2)

$107.0

$106.0

1.0%

$287.4

$312.6

(8.1)%

Adjusted diluted EPS from continuing operations(1)(2)

$2.33

$2.26

3.1%

$6.19

$6.65

(6.9)%

Net cash provided by operating activities from continuing and discontinued operations

$92.1

$43.2

n/m

$320.0

$336.4

(4.9)%

Free cash flow from continuing and discontinued operations(2)

$65.9

$17.8

n/m

$211.2

$230.3

(8.3)%

Notes:

(1)

 

GAAP effective tax rates were approximately 17.0% and 27.0% for the three months ended December 31, 2023 and 2022, respectively, and 32.2% and 44.2% for the year ended December 31, 2023 and 2022, respectively. Adjusted effective tax rates were approximately 22.5% and 23.2% for the three months ended December 31, 2023 and 2022, respectively, and 23.3% and 22.9% for the year ended December 31, 2023 and 2022, respectively.

(2)

 

For definitions of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures refer to section “Non-GAAP Financial Measures” further in this report.

(3)

 

The revenues associated with each of the businesses may not foot precisely since each is presented independently.

ZIFF DAVIS GUIDANCE

The Company’s full year 2024 outlook is as follows (in millions, except per share data):

 

2023 Actual

 

2024 Range of Estimates

 

Growth

 

(unaudited)

 

Low

 

High

 

Low

 

High

Revenue

$

1,364.0

 

$

1,411.0

 

$

1,471.0

 

3.4

%

 

7.8

%

Adjusted EBITDA

$

482.3

 

$

500.0

 

$

521.0

 

3.7

%

 

8.0

%

Adjusted diluted EPS*

$

6.19

 

$

6.43

 

$

6.77

 

3.9

%

 

9.4

%

 

* Adjusted diluted EPS for 2024 excludes amortization of acquired intangibles and the impact of any currently unanticipated items, in each case net of tax. It is anticipated that the Adjusted effective tax rate for 2024 will be between 23.25% and 25.25%.

A reconciliation of forward-looking Adjusted EBITDA and Adjusted diluted EPS to the corresponding GAAP guidance financial measures is not available without unreasonable effort due, primarily, to variability and difficulty in making accurate forecasts and projections of non-operating matters that may arise in the future.

Earnings Conference Call and Audio Webcast

Ziff Davis will host a live audio webcast and conference call discussing its fourth quarter and year-end 2023 financial results on Thursday, February 22, 2024, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via www.ziffdavis.com. Following the event, the audio recording and presentation materials will be archived and made available at www.ziffdavis.com.

About Ziff Davis

Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, connectivity, health, cybersecurity, and martech. For more information, visit www.ziffdavis.com.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah’s quote and the “Ziff Davis Guidance” section regarding the Company’s expected fiscal 2024 financial performance. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company’s ability to grow advertising, licensing, and subscription revenues, profitability, and cash flows, particularly in light of an uncertain U.S. or worldwide economy, including the possibility of economic downturn or recession; the Company’s ability to make interest and debt payments; the Company’s ability to identify, close, and successfully transition acquisitions; subscriber growth and retention; the Company’s ability to create compelling content; our reliance on third-party platforms; the threat of content piracy and developments related to artificial intelligence; increased competition and rapid technological changes; variability of the Company’s revenue based on changing conditions in particular industries and the economy generally; protection of the Company’s proprietary technology or infringement by the Company of intellectual property of others; the risk of losing critical third-party vendors or key personnel; the risks associated with fraudulent activity, system failure, or a security breach; risks related to our ability to adhere to our internal controls and procedures; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; the risks related to supply chain disruptions, inflationary conditions, and rising interest rates; the risk of liability for legal and other claims; and the numerous other factors set forth in Ziff Davis’ filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting Ziff Davis, refer to our most recent Annual Report on Form 10-K and the other reports filed by Ziff Davis from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release, including those contained in Vivek Shah’s quote and in the “Ziff Davis Guidance” portion regarding the Company’s expected fiscal 2024 financial performance are based on limited information available to the Company at this time, which is subject to change. Although management’s expectations may change after the date of this Press Release, the Company undertakes no obligation to revise or update these statements.

ZIFF DAVIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

 

 

December 31,

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

Cash and cash equivalents

$

737,612

 

 

$

652,793

 

Short-term investments

 

27,109

 

 

 

58,421

 

Accounts receivable, net of allowances of $6,871 and $6,868, respectively

 

337,703

 

 

 

304,739

 

Prepaid expenses and other current assets

 

88,570

 

 

 

68,319

 

Total current assets

 

1,190,994

 

 

 

1,084,272

 

Long-term investments

 

140,906

 

 

 

127,871

 

Property and equipment, net of accumulated depreciation of $327,015 and $255,586, respectively

 

188,169

 

 

 

178,184

 

Intangible assets, net

 

325,406

 

 

 

462,815

 

Goodwill

 

1,546,065

 

 

 

1,591,474

 

Deferred income taxes

 

8,731

 

 

 

8,523

 

Other assets

 

70,751

 

 

 

80,131

 

TOTAL ASSETS

$

3,471,022

 

 

$

3,533,270

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Accounts payable

$

123,256

 

 

$

120,829

 

Accrued employee related costs

 

50,068

 

 

 

42,178

 

Other accrued liabilities

 

43,612

 

 

 

39,539

 

Income taxes payable, current

 

14,458

 

 

 

19,712

 

Deferred revenue, current

 

184,549

 

 

 

187,904

 

Other current liabilities

 

15,890

 

 

 

22,286

 

Total current liabilities

 

431,833

 

 

 

432,448

 

Long-term debt

 

1,001,312

 

 

 

999,053

 

Deferred revenue, noncurrent

 

8,169

 

 

 

9,103

 

Deferred income taxes

 

45,503

 

 

 

79,007

 

Income taxes payable, noncurrent

 

8,486

 

 

 

11,675

 

Other long-term liabilities

 

82,721

 

 

 

109,373

 

TOTAL LIABILITIES

 

1,578,024

 

 

 

1,640,659

 

 

 

 

 

Common stock

 

461

 

 

 

473

 

Additional paid-in capital

 

472,201

 

 

 

439,681

 

Retained earnings

 

1,491,956

 

 

 

1,537,830

 

Accumulated other comprehensive loss

 

(71,620

)

 

 

(85,373

)

TOTAL STOCKHOLDERS’ EQUITY

 

1,892,998

 

 

 

1,892,611

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

3,471,022

 

 

$

3,533,270

ZIFF DAVIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

 

 

Three months ended December 31,

 

Year ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Total revenues

$

389,885

 

 

$

396,700

 

 

$

1,364,028

 

 

$

1,390,997

 

Operating costs and expenses:

 

 

 

 

 

 

 

Direct costs

 

48,615

 

 

 

50,847

 

 

 

197,292

 

 

 

195,554

 

Sales and marketing

 

126,449

 

 

 

129,764

 

 

 

487,365

 

 

 

490,777

 

Research, development, and engineering

 

15,532

 

 

 

18,210

 

 

 

68,860

 

 

 

74,093

 

General, administrative, and other related costs

 

118,569

 

 

 

104,421

 

 

 

421,050

 

 

 

404,263

 

Goodwill impairment on business

 

 

 

 

 

 

 

56,850

 

 

 

27,369

 

Total operating costs and expenses

 

309,165

 

 

 

303,242

 

 

 

1,231,417

 

 

 

1,192,056

 

Income from operations

 

80,720

 

 

 

93,458

 

 

 

132,611

 

 

 

198,941

 

Interest expense, net

 

(2,251

)

 

 

(5,423

)

 

 

(20,031

)

 

 

(33,842

)

Gain on debt extinguishment, net

 

 

 

 

 

 

 

 

 

 

11,505

 

Gain (loss) on investments, net

 

 

 

 

1,029

 

 

 

357

 

 

 

(46,743

)

Unrealized gain (loss) on short-term investments held at the reporting date, net

 

1,065

 

 

 

7,020

 

 

 

(28,495

)

 

 

(7,145

)

Other (loss) income, net

 

(3,486

)

 

 

(4,525

)

 

 

(9,468

)

 

 

8,437

 

Income from continuing operations before income taxes and income (loss) from equity method investment, net

 

76,048

 

 

 

91,559

 

 

 

74,974

 

 

 

131,153

 

Income tax expense

 

(12,962

)

 

 

(24,726

)

 

 

(24,142

)

 

 

(57,957

)

Income (loss) from equity method investment, net of income taxes

 

336

 

 

 

2,347

 

 

 

(9,329

)

 

 

(7,730

)

Net income from continuing operations

 

63,422

 

 

 

69,180

 

 

 

41,503

 

 

 

65,466

 

Loss from discontinued operations, net of income taxes

 

 

 

 

(1,709

)

 

 

 

 

 

(1,709

)

Net income

$

63,422

 

 

$

67,471

 

 

$

41,503

 

 

$

63,757

 

 

 

 

 

 

 

 

 

Net income per common share from continuing operations:

 

 

 

 

 

 

 

Basic

$

1.39

 

 

$

1.47

 

 

$

0.89

 

 

$

1.39

 

Diluted

$

1.29

 

 

$

1.37

 

 

$

0.89

 

 

$

1.39

 

Net loss per common share from discontinued operations:

 

 

 

 

 

 

 

Basic

$

 

 

$

(0.04

)

 

$

 

 

$

(0.04

)

Diluted

$

 

 

$

(0.03

)

 

$

 

 

$

(0.04

)

Net income per common share:

 

 

 

 

 

 

 

Basic

$

1.39

 

 

$

1.44

 

 

$

0.89

 

 

$

1.36

 

Diluted

$

1.29

 

 

$

1.34

 

 

$

0.89

 

 

$

1.36

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

45,772,689

 

 

 

46,915,647

 

 

 

46,400,941

 

 

 

46,954,558

 

Diluted

 

50,985,086

 

 

 

52,114,995

 

 

 

46,464,261

 

 

47,025,849

ZIFF DAVIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

 

 

Year ended December 31,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net income

$

41,503

 

 

$

63,757

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

236,966

 

 

 

233,400

 

Non-cash operating lease costs

 

11,141

 

 

 

13,412

 

Share-based compensation

 

31,920

 

 

 

26,601

 

Provision for credit losses (benefit) on accounts receivable

 

2,809

 

 

 

(255

)

Deferred income taxes, net

 

(30,017

)

 

 

(12,991

)

Gain on extinguishment of debt, net

 

 

 

 

(11,505

)

Goodwill impairment on business

 

56,850

 

 

 

27,369

 

Changes in fair value of contingent consideration

 

(200

)

 

 

(2,575

)

Loss from equity method investments

 

9,329

 

 

 

7,730

 

Unrealized loss on short-term investments held at the reporting date

 

28,495

 

 

 

7,145

 

(Gain) loss on investment, net

 

(357

)

 

 

46,743

 

Other

 

5,159

 

 

 

3,637

 

Decrease (increase) in:

 

 

 

Accounts receivable

 

(35,371

)

 

 

14,948

 

Prepaid expenses and other current assets

 

(8,700

)

 

 

9,665

 

Other assets

 

(5,574

)

 

 

(16,240

)

Increase (decrease) in:

 

 

 

Accounts payable

 

9,419

 

 

 

(20,246

)

Deferred revenue

 

(6,802

)

 

 

(20,962

)

Accrued liabilities and other current liabilities

 

(26,608

)

 

 

(33,189

)

Net cash provided by operating activities

 

319,962

 

 

 

336,444

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(108,729

)

 

 

(106,154

)

Acquisition of businesses, net of cash received

 

(9,492

)

 

 

(104,094

)

Investment in available-for-sale securities

 

 

 

 

(15,000

)

Purchase of equity investments

 

(11,858

)

 

 

 

Proceeds from sale of equity investments

 

3,174

 

 

 

4,527

 

Other

 

(503

)

 

 

(50

)

Net cash used in investing activities

 

(127,408

)

 

 

(220,771

)

Cash flows from financing activities:

 

 

 

Payment of debt

 

 

 

 

(166,904

)

Proceeds from term loan

 

 

 

 

112,286

 

Debt extinguishment costs

 

 

 

 

(756

)

Repurchase of common stock

 

(108,527

)

 

 

(78,291

)

Issuance of common stock under employee stock purchase plan

 

8,727

 

 

 

9,431

 

Proceeds from exercise of stock options

 

 

 

 

148

 

Deferred payments for acquisitions

 

(15,241

)

 

 

(16,116

)

Other

 

250

 

 

 

(630

)

Net cash used in financing activities

 

(114,791

)

 

 

(140,832

)

Effect of exchange rate changes on cash and cash equivalents

 

7,056

 

 

 

(16,890

)

Net change in cash and cash equivalents

 

84,819

 

 

 

(42,049

)

Cash and cash equivalents at beginning of year

 

652,793

 

 

 

694,842

 

Cash and cash equivalents at end of year

$

737,612

 

 

652,793

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss) or Adjusted net income (loss) from continuing operations, Adjusted net income (loss) per diluted share or Adjusted net income (loss) per diluted share from continuing operations, Free cash flow, and Adjusted effective tax rate (collectively 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 these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide 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 these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

These 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 comprehensive set of accounting rules or principles. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.

Non-GAAP financial measures exclude the certain items listed below. We believe that excluding these items from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measures excluding these items provide meaningful supplemental information regarding operational performance. We further believe these measures are 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) or Net income (loss) from continuing operations with adjustments to reflect the addition or elimination of certain items including:

  • 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 a non-cash debt-for-equity exchange effectuated to settle amounts of senior secured term loans of the Company under its Credit Agreement with common stock of Consensus Cloud Solutions, Inc. (“Consensus”) owned by the Company. We believe this (gain) loss does not represent recurring core business operating results of the Company;
  • (Gain) loss on sale of business. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company;
  • Unrealized (gain) loss on short-term investments held at the reporting date, net. This is a non-cash item as it relates to the change in the carrying value of our investment in Consensus depending on the share price of Consensus common stock and does not represent core business operating results of the Company;
  • (Gain) loss on investments, net. This item relates to the disposition of a portion of our investment in Consensus. The amount of gain or loss depends on the share price of Consensus common stock and does not represent core business operating results of the Company;
  • Other (income) expense, 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 investments, net. This is a non-cash expense as it relates to our investment in OCV Fund I, LP (the “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 as it relates to use and associated reduction in value of certain assets including equipment, fixtures, and certain capitalized internal-used software and website development costs, and identifiable definite-lived intangible assets of the acquired businesses. This also includes the reduction in value of certain acquired intangible assets that represent the cost incurred by the acquiree to build value prior to the acquisition and the amortization of this cost does not represent core business operating results of the Company;
  • 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, including adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance and legal settlements. These expenses do not represent core business operating results of the Company;
  • Disposal related costs associated with disposal of certain businesses. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company;
  • 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 on business. 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.

Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Total revenues.

Adjusted net income (loss) or Adjusted net income (loss) from continuing operations is defined as Net income (loss) or Net income (loss) from continuing operations with adjustments to reflect the addition or elimination of certain statement of operations items including, but not limited to:

  • Interest costs, net. This reflects the difference between the imputed and coupon interest expense associated with the 4.625% Senior Notes and a charge that the Company determined to be penalty interest associated with the 1.75% Convertible Notes in each period presented, offset in part by a certain interest income earned by the Company. These net expenses do not represent core business operating results of the Company;
  • (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to a non-cash debt-for-equity exchange effectuated to settle amounts of senior secured term loans of the Company under its Credit Agreement with common stock of Consensus owned by the Company. We believe this gain or loss does not represent recurring core business operating results of the Company;
  • (Gain) loss on sale of business. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company;
  • Unrealized (gain) loss on short-term investments held at the reporting date, net. This is a non-cash item as it relates to the change in the carrying value of our investment in Consensus depending on the share price of Consensus common stock and does not represent core business operating results of the Company;
  • (Gain) loss on investments, net. This item relates to the disposition of a portion of our investment in Consensus. The amount of gain or loss depends on the share price of Consensus common stock and does not represent core business operating results of the Company;
  • (Income) loss from equity method investments, net. This is a non-cash income or expense as it relates to our investment in the OCV Fund. We believe that gains or losses resulting from our equity method investment do not represent core business operating results of the Company;
  • Amortization of patents and intangible assets that we acquired. This is a non-cash expense as it primarily relates to identifiable definite-lived intangible assets of the acquired businesses. We believe that acquired intangible assets represent cost incurred by the acquiree to build value prior to the acquisition and the amortization of this cost does not represent core business operating results of the Company;
  • Share-based compensation. This is a non-cash expense as it relates to awards granted under the various 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, including adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance and legal settlements. These expenses do not represent core business operating results of the Company;
  • Disposal related costs associated with disposal of certain businesses. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company;
  • Lease asset impairments and other charges. These are expenses incurred in connection with impaired 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 on business. 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.

Adjusted net income (loss) per diluted share or Adjusted net income (loss) per diluted share from continuing operations is calculated by dividing Adjusted net income (loss) or Adjusted net income (loss) from continuing operations by the diluted weighted average shares of common stock outstanding that excludes the effect of convertible debt dilution.

Free cash flow is defined as Net cash provided by operating activities, less purchases of property and equipment, plus changes in contingent consideration.

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

The following table sets forth a reconciliation of Net income from continuing operations to Adjusted EBITDA:

 

 

Three months ended December 31,

 

Year ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income from continuing operations

$

63,422

 

 

$

69,180

 

 

$

41,503

 

 

$

65,466

 

Interest expense, net

 

2,251

 

 

 

5,423

 

 

 

20,031

 

 

 

33,842

 

Gain on debt extinguishment, net

 

 

 

 

 

 

 

 

 

 

(11,505

)

Unrealized (gain) loss on short-term investments held at the reporting date, net

 

(1,065

)

 

 

(7,020

)

 

 

28,495

 

 

 

7,145

 

(Gain) loss on investments, net

 

 

 

 

(1,029

)

 

 

(357

)

 

 

46,743

 

Other loss (income), net

 

3,486

 

 

 

4,525

 

 

 

9,468

 

 

 

(8,437

)

Income tax expense

 

12,962

 

 

 

24,726

 

 

 

24,142

 

 

 

57,957

 

(Income) loss from equity method investment, net

 

(336

)

 

 

(2,347

)

 

 

7,829

 

 

 

7,730

 

Depreciation and amortization

 

69,633

 

 

 

58,520

 

 

 

236,966

 

 

 

233,400

 

Share-based compensation

 

7,527

 

 

 

5,795

 

 

 

31,920

 

 

 

26,601

 

Acquisition, integration, and other costs

 

9,649

 

 

 

9,753

 

 

 

21,000

 

 

 

17,426

 

Disposal related costs

 

375

 

 

 

 

 

 

2,217

 

 

 

1,328

 

Lease asset impairments and other charges

 

(338

)

 

 

778

 

 

 

2,245

 

 

 

2,178

 

Goodwill impairment on business

 

 

 

 

 

 

 

56,850

 

 

 

27,369

 

Adjusted EBITDA

$

167,566

 

 

$

168,304

 

 

$

482,309

 

 

$

507,243

 

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

The following table sets forth Revenues and a reconciliation of Income (loss) from operations to Adjusted EBITDA by segment:

 

 

Three months ended December 31, 2023

 

Digital

Media

 

Cybersecurity

and Martech

 

Corporate

 

Total

Revenues

$

317,939

 

 

$

71,946

 

$

 

 

$

389,885

 

 

 

 

 

 

 

 

 

Income (loss) from operations

$

88,709

 

 

$

5,430

 

$

(13,419

)

 

$

80,720

 

Depreciation and amortization

 

51,168

 

 

 

18,457

 

 

8

 

 

 

69,633

 

Share-based compensation

 

2,661

 

 

 

932

 

 

3,934

 

 

 

7,527

 

Acquisition, integration, and other costs

 

9,220

 

 

 

420

 

 

9

 

 

 

9,649

 

Disposal related costs

 

251

 

 

 

 

 

124

 

 

 

375

 

Lease asset impairments and other charges

 

(544

)

 

 

206

 

 

 

 

 

(338

)

Adjusted EBITDA

$

151,465

 

 

$

25,445

 

$

(9,344

)

$

167,566

 

Three months ended December 31, 2022

 

Digital

Media

 

Cybersecurity

and Martech

 

Corporate

 

Total

Revenues

$

321,670

 

$

75,030

 

 

$

 

 

$

396,700

 

 

 

 

 

 

 

 

Income (loss) from operations

$

95,015

 

$

11,554

 

 

$

(13,111

)

 

$

93,458

Depreciation and amortization

 

46,361

 

 

12,149

 

 

 

10

 

 

 

58,520

Share-based compensation

 

2,225

 

 

563

 

 

 

3,007

 

 

 

5,795

Acquisition, integration, and other costs

 

7,784

 

 

1,179

 

 

 

790

 

 

 

9,753

Lease asset impairments and other charges

 

791

 

 

(13

)

 

 

 

 

 

778

Adjusted EBITDA

$

152,176

 

$

25,432

 

 

$

(9,304

)

 

$

168,304

 

Figures above are net of intercompany costs and revenues.

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

 

 

Year ended December 31, 2023

 

Digital

Media

 

Cybersecurity

and Martech

 

Corporate

 

Total

Revenues

$

1,072,819

 

$

291,209

 

$

 

 

$

1,364,028

 

 

 

 

 

 

 

 

 

Income (loss) from operations

$

140,839

 

$

43,210

 

$

(51,438

)

 

$

132,611

 

Income from equity method investment, net

 

 

 

 

 

(1,500

)

 

 

(1,500

)

Depreciation and amortization

 

184,320

 

 

52,618

 

 

28

 

 

 

236,966

 

Share-based compensation

 

12,680

 

 

4,186

 

 

15,054

 

 

 

31,920

 

Acquisition, integration, and other costs

 

19,913

 

 

887

 

 

200

 

 

 

21,000

 

Disposal related costs

 

704

 

 

202

 

 

1,311

 

 

 

2,217

 

Lease asset impairments and other charges

 

1,774

 

 

471

 

 

 

 

 

2,245

 

Goodwill impairment on a business

 

56,850

 

 

 

 

 

 

 

56,850

 

Adjusted EBITDA

$

417,080

 

$

101,574

 

$

(36,345

)

 

$ 

482,309 

 

Year ended December 31, 2022

 

Digital

Media

 

Cybersecurity

and Martech

 

Corporate

 

Total

Revenues

$

1,078,391

 

$

312,606

 

$

 

 

$

1,390,997

 

 

 

 

 

 

 

 

Income (loss) from operations

$

198,171

 

$

50,960

 

$

(50,190

)

 

$

198,941

Depreciation and amortization

 

184,658

 

 

48,714

 

 

28

 

 

 

233,400

Share-based compensation

 

10,433

 

 

4,280

 

 

11,888

 

 

 

26,601

Acquisition, integration, and other costs

 

14,121

 

 

2,111

 

 

1,194

 

 

 

17,426

Disposal related costs

 

11

 

 

 

 

1,317

 

 

 

1,328

Lease asset impairments and other charges

 

1,631

 

 

547

 

 

 

 

 

2,178

Goodwill impairment on a business

 

27,369

 

 

 

 

 

 

 

27,369

Adjusted EBITDA

$

436,394

 

$

106,612

 

$

(35,763

)

 

$

507,243

 

Figures above are net of intercompany costs and revenues.

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The following tables set forth a reconciliation of Net income from continuing operations to Adjusted net income from continuing operations with adjustments presented on after-tax basis:

 

 

Three months ended December 31,

 

 

2023

 

 

Per diluted share*

 

 

2022

 

 

Per diluted share*

Net income from continuing operations

$

63,422

 

 

$

1.29

 

 

$

69,180

 

 

$

1.37

 

Interest costs, net

 

(20

)

 

 

 

 

 

120

 

 

 

 

Loss on sale of business

 

276

 

 

 

0.01

 

 

 

 

 

 

 

Unrealized gain on short-term investments held at the reporting date, net

 

(775

)

 

 

(0.02

)

 

 

(2,839

)

 

 

(0.06

)

Gain on investments, net

 

 

 

 

 

 

 

(1,024

)

 

 

(0.02

)

Income from equity method investment, net

 

(336

)

 

 

(0.01

)

 

 

(2,347

)

 

 

(0.05

)

Amortization

 

31,105

 

 

 

0.68

 

 

 

28,696

 

 

 

0.61

 

Share-based compensation

 

6,289

 

 

 

0.14

 

 

 

6,044

 

 

 

0.13

 

Acquisition, integration, and other costs

 

7,011

 

 

 

0.15

 

 

 

7,401

 

 

 

0.16

 

Disposal related costs

 

238

 

 

 

0.01

 

 

 

395

 

 

 

0.01

 

Lease asset impairments and other charges

 

(224

)

 

 

 

 

 

559

 

 

 

0.01

 

Goodwill impairment on business

 

 

 

 

 

 

 

(222

)

 

 

 

Dilutive effect of the convertible debt

 

 

 

 

0.08

 

 

 

 

 

 

0.10

 

Adjusted net income from continuing operations

$

106,986

 

 

$

2.33

 

 

$

105,963

 

 

$

2.26

 

 

Year ended December 31,

 

 

2023

 

 

Per diluted share*

 

 

2022

 

 

Per diluted share*

Net income from continuing operations

$

41,503

 

 

$

0.89

 

 

$

65,466

 

 

$

1.39

 

Interest costs, net

 

5,881

 

 

 

0.13

 

 

 

374

 

 

 

0.01

 

Gain on debt extinguishment, net

 

 

 

 

 

 

 

(9,094

)

 

 

(0.19

)

Loss on sale of business

 

3,797

 

 

 

0.08

 

 

 

 

 

 

 

Unrealized loss on short-term investments held at the reporting date, net

 

21,371

 

 

 

0.46

 

 

 

22,674

 

 

 

0.48

 

(Gain) loss on investments, net

 

(268

)

 

 

(0.01

)

 

 

46,275

 

 

 

0.99

 

Loss from equity method investment, net

 

8,204

 

 

 

0.18

 

 

 

7,730

 

 

 

0.16

 

Amortization

 

106,593

 

 

 

2.30

 

 

 

119,170

 

 

 

2.53

 

Share-based compensation

 

27,100

 

 

 

0.58

 

 

 

23,209

 

 

 

0.49

 

Acquisition, integration, and other costs

 

13,498

 

 

 

0.29

 

 

 

13,278

 

 

 

0.28

 

Disposal related costs

 

1,538

 

 

 

0.03

 

 

 

1,449

 

 

 

0.03

 

Lease asset impairment and other charges

 

1,295

 

 

 

0.04

 

 

 

1,640

 

 

 

0.03

 

Goodwill impairment on business

 

56,850

 

 

 

1.22

 

 

 

20,414

 

 

 

0.43

 

Dilutive effect of the convertible debt

 

 

 

 

 

 

 

 

 

 

0.02

 

Adjusted net income from continuing operations

$

287,362

 

 

$

6.19

 

 

$

312,585

 

 

$

6.65

 

 
* The reconciliation of Net income from continuing operations per diluted share to Adjusted net income from continuing operations per diluted share may not foot since each is calculated independently.

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

The following are the adjustments to certain statement of operations items used to derive Adjusted net income, which we believe provide useful information about our operating results and enhance the overall understanding of past financial performance and future prospects of the Company.

 

 

Three months ended December 31, 2023

 

GAAP amount

Adjustments

Adjusted non-GAAP amount

 

Interest costs, net

(Gain) loss on sale of business

Unrealized (gain) loss on short-term investments held at the reporting date, net

(Income) loss from equity method investments, net

Amortization

Share-based compensation

Acquisition, integration, and other costs

Disposal related costs

Lease asset impairments and other charges

Direct costs

$

(48,615

)

$

 

$

 

$

 

$

 

$

124

 

$

15

 

$

2,561

 

$

 

$

 

$

(45,915

)

Sales and marketing

$

(126,449

)

 

 

 

 

 

 

 

 

 

 

 

392

 

 

1,668

 

 

 

 

 

$

(124,389

)

Research, development, and engineering

$

(15,532

)

 

 

 

 

 

 

 

 

 

 

 

660

 

 

177

 

 

 

 

 

$

(14,695

)

General, administrative, and other related costs

$

(118,569

)

 

 

 

 

 

 

 

 

 

44,867

 

 

6,460

 

 

5,243

 

 

375

 

 

(338

)

$

(61,962

)

Interest expense, net

$

(2,251

)

 

(11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(2,262

)

Unrealized gain on short-term investments held at period end, net

$

1,065

 

 

 

 

 

 

(1,065

)

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Other loss, net

$

(3,486

)

 

 

 

422

 

 

 

 

 

 

 

 

 

 

459

 

 

 

 

 

$

(2,605

)

Income tax expense

$

(12,962

)

 

(9

)

 

(146

)

 

290

 

 

 

 

(13,886

)

 

(1,238

)

 

(3,097

)

 

(137

)

 

114

 

$

(31,071

)

Income from equity method investment, net

$

336

 

 

 

 

 

 

 

 

(336

)

 

 

 

 

 

 

 

 

 

 

$

 

Total non-GAAP adjustments

 

$

(20

)

$

276

 

$

(775

)

$

(336

)

$

31,105

 

$

6,289

 

$

7,011

 

$

238

 

$

(224

)

 

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

 

 

Three months ended December 31, 2022

 

GAAP amount

Adjustments

 

 

Interest costs, net

Unrealized (gain) loss on short-term investments held at the reporting date, net

(Gain) loss on investments, net

(Income) loss from equity method investments, net

Amortization

Share-based compensation

Acquisition, integration, and other costs

Disposal related costs

Lease asset impairments and other charges

Goodwill impairment of business

 

Adjusted non-GAAP amount

Direct costs

$

(50,847

)

$

$

 

$

 

$

 

$

221

 

$

52

$

245

 

$

$

 

$

 

$

(50,329

)

Sales and marketing

$

(129,764

)

 

 

 

 

 

 

 

 

 

 

636

 

3,825

 

 

 

 

 

 

$

(125,303

)

Research, development, and engineering

$

(18,210

)

 

 

 

 

 

 

 

 

 

 

455

 

528

 

 

 

 

 

 

$

(17,227

)

General, administrative, and other related costs

$

(104,421

)

 

 

 

 

 

 

 

 

37,641

 

 

4,652

 

5,155

 

 

 

778

 

 

 

$

(56,195

)

Interest expense, net

$

(5,423

)

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(5,327

)

Gain on investment, net

$

1,029

 

 

 

 

 

(1,029

)

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Unrealized gain on short-term investments held at period end, net

$

7,020

 

 

 

(7,020

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Other loss, net

$

(4,525

)

 

 

 

 

 

 

 

 

 

 

 

(195

)

 

314

 

 

 

 

$

(4,406

)

Income tax expense

$

(24,726

)

 

24

 

4,181

 

 

5

 

 

 

 

(9,166

)

 

249

 

(2,157

)

 

81

 

(219

)

 

(222

)

$

(31,950

)

Income from equity method investment, net

$

2,347

 

 

 

 

 

 

 

(2,347

)

 

 

 

 

 

 

 

 

 

 

$

 

Total non-GAAP adjustments

 

$

120

$

(2,839

)

$

(1,024

)

$

(2,347

)

$

28,696

 

$

6,044

$

7,401

 

$

395

$

559

 

$

(222

)

 

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

 

 

Year ended December 31, 2023

 

GAAP amount

Adjustments

 

Adjusted non-GAAP amount

 

Interest costs, net

(Gain) loss on sale of business

Unrealized (gain) loss on short-term investments held at the reporting date, net

(Gain) loss on investments, net

(Income) loss from equity method investments, net

Amortization

Share-based compensation

Acquisition, integration, and other costs

Disposal related costs

Lease asset impairments and other charges

Goodwill impairment of business

 

Direct costs

$

(197,292

)

$

 

$

 

$

 

$

 

$

 

$

667

 

$

262

 

$

2,752

 

$

 

$

 

$

 

$

(193,611

)

Sales and marketing

$

(487,365

)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,686

 

 

4,796

 

 

4

 

 

 

 

 

$

(479,879

)

Research, development, and engineering

$

(68,860

)

 

 

 

 

 

 

 

 

 

 

 

 

 

3,245

 

 

712

 

 

3

 

 

 

 

 

$

(64,900

)

General, administrative, and other related costs

$

(421,050

)

 

 

 

 

 

 

 

 

 

(1,500

)

 

144,904

 

 

25,727

 

 

12,740

 

 

2,210

 

 

2,245

 

 

 

$

(234,724

)

Goodwill impairment on business

$

(56,850

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,850

 

$

 

Interest expense, net

$

(20,031

)

 

7,797

 

 

(538

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(12,772

)

Gain on investment, net

$

357

 

 

 

 

 

 

 

 

(357

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Unrealized loss on short-term investments held at period end, net

$

(28,495

)

 

 

 

 

 

28,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Other loss, net

$

(9,468

)

 

 

 

5,655

 

 

 

 

 

 

 

 

 

 

 

 

459

 

 

 

 

 

 

 

$

(3,354

)

Income tax expense

$

(24,142

)

 

(1,916

)

 

(1,320

)

 

(7,124

)

 

89

 

 

375

 

 

(38,978

)

 

(4,820

)

 

(7,961

)

 

(679

)

 

(950

)

 

 

$

(87,426

)

Loss from equity method investment, net

$

(9,329

)

 

 

 

 

 

 

 

 

 

9,329

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Total non-GAAP adjustments

 

$

5,881

 

$

3,797

 

$

21,371

 

$

(268

)

$

8,204

 

$

106,593

 

$

27,100

 

$

13,498

 

$

1,538

 

$

1,295

 

$

56,850

 

 

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

 

 

Year ended December 31, 2022

 

GAAP amount

Adjustments

Adjusted non-GAAP amount

 

Interest costs, net

(Gain) loss on debt extinguishment

Unrealized (gain) loss on short-term investments held at the reporting date, net

(Gain) loss on investments, net

(Income) loss from equity method investments, net

Amortization

Share-based compensation

Acquisition, integration, and other costs

Disposal related costs

Lease asset impairments and other charges

Goodwill impairment of business

Direct costs

$

(195,554

)

$

 

$

 

$

$

 

$

$

1,000

 

$

341

 

$

364

 

$

 

$

 

$

 

$

(193,849

)

Sales and marketing

$

(490,777

)

 

 

 

 

 

 

 

 

 

 

 

3,083

 

 

6,293

 

 

 

 

 

 

 

$

(481,401

)

Research, development, and engineering

$

(74,093

)

 

 

 

 

 

 

 

 

 

 

 

2,503

 

 

1,199

 

 

 

 

 

 

 

$

(70,391

)

General, administrative, and other related costs

$

(404,263

)

 

 

 

 

 

 

 

 

 

156,922

 

 

20,674

 

 

9,570

 

 

1,328

 

 

2,178

 

 

 

$

(213,591

)

Goodwill impairment on business

$

(27,369

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,369

 

$

 

Interest expense, net

$

(33,842

)

 

433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(33,409

)

Gain on debt extinguishment, net

$

11,505

 

 

 

 

(12,060

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(555

)

Loss on investment, net

$

(46,743

)

 

 

 

 

 

 

46,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Unrealized loss on short-term investments held at period end, net

$

(7,145

)

 

 

 

 

 

7,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Other income, net

$

8,437

 

 

 

 

 

 

 

(624

)

 

 

 

 

 

 

(195

)

 

203

 

 

 

 

 

$

7,821

 

Income tax expense

$

(57,957

)

 

(59

)

 

2,966

 

 

15,529

 

156

 

 

 

(38,752

)

 

(3,392

)

 

(3,953

)

 

(82

)

 

(538

)

 

(6,955

)

$

(93,037

)

Loss from equity method investment, net

$

(7,730

)

 

 

 

 

 

 

 

 

7,730

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Total non-GAAP adjustments

 

$

374

 

$

(9,094

)

$

22,674

$

46,275

 

$

7,730

$

119,170

 

$

23,209

 

$

13,278

 

$

1,449

 

$

1,640

 

$

20,414

 

ZIFF DAVIS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

The following tables set forth a reconciliation of Net cash provided by operating activities to Free cash flow:

 

2023

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Net cash provided by operating activities

$

115,307

 

 

$

39,728

 

 

$

72,808

 

 

$

92,119

 

 

$

319,962

 

Less: Purchases of property and equipment

 

(30,017

)

 

 

(25,233

)

 

 

(27,226

)

 

 

(26,253

)

 

 

(108,729

)

Free cash flow

$

85,290

 

 

$

14,495

 

 

$

45,582

 

 

$

65,866

 

 

$

211,233

 

2022

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Net cash provided by operating activities from continuing and discontinued operations

$

116,511

 

 

$

75,973

 

 

$

100,735

 

 

$

43,225

 

 

$

336,444

 

Less: Purchases of property and equipment

 

(30,502

)

 

 

(23,374

)

 

 

(26,891

)

 

 

(25,387

)

 

 

(106,154

)

Free cash flow from continuing and discontinued operations

$

86,009

 

 

$

52,599

 

 

$

73,844

 

 

$

17,838

 

 

$

230,290

 

 

Ziff Davis, Inc. (NASDAQ: ZD) today reported unaudited financial results for the fourth quarter and year ended December 31, 2023, and provided 2024 guidance.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.

Use the myMotherLode.com Keyword Search to go straight to a specific page

Popular Pages

  • Local News
  • US News
  • Weather
  • State News
  • Events
  • Traffic
  • Sports
  • Dining Guide
  • Real Estate
  • Classifieds
  • Financial News
  • Fire Info
Feedback