EX-99.1 2 exhibit9912023-2024data.htm EX-99.1

Exhibit 99.1

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

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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.

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The following tables set forth Revenues (1) by quarter and by reportable segment (in thousands):

			2023
			Technology & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & Martech						Corporate						Total
Q1 2023			$	69,942					$	34,573					$	78,189					$	51,422					$	73,016					$	—					$	307,142
Q2 2023			76,675						39,995						86,666						49,484						73,196						—						326,016
Q3 2023			78,718						45,023						90,619						53,574						73,051						—						340,985
Q4 2023			105,222						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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & Martech						Corporate						Total
Q1 2024			$	69,267					$	36,640					$	79,978					$	53,148					$	75,452					$	—					$	314,485
Q2 2024			72,567						42,981						85,988						50,281						68,983						—						320,800
Q3 2024			87,126						49,714						90,771						55,943						70,026						—						353,580
Q4 2024			132,922						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.

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The following tables set forth Adjusted EBITDA by quarter and by reportable segment (in thousands):

			2023
			Technology & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & Martech						Corporate (1)						Total
Q1 2023			$	14,201					$	11,183					$	26,977					$	27,098					$	25,086					$	(10,212)					$	94,333
Q2 2023			19,060						15,310						31,234						23,487						26,605						(9,020)						106,676
Q3 2023			17,585						19,528						33,757						26,368						24,438						(7,942)						113,734
Q4 2023			49,822						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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & Martech						Corporate (1)						Total
Q1 2024			$	14,624					$	13,429					$	26,198					$	26,946					$	29,643					$	(10,089)					$	100,751
Q2 2024			17,345						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 2024			58,253						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.

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RECONCILIATION

TO NON-GAAP MEASURE

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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;

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•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.

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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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			20,897						2,308						13,360						6,255						11,630						173						54,623
Share-based compensation			654						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 charges			827						—						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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			21,573						2,281						14,426						6,731						11,590						255						56,856
Share-based compensation			1,079						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

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			Three months ended September 30, 2023
			Technology & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			21,232						3,712						14,010						7,351						10,941						(1,392)						55,854
Share-based compensation			2,207						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 costs			453						—						—						—						202						978						1,633
Lease asset impairments and other charges			1,104						—						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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			19,569						2,067						18,074						11,456						18,457						10						69,633
Share-based compensation			1,001						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 costs			180						—						—						—						—						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.

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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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			17,914						2,392						13,399						7,001						7,740						7						48,453
Share-based compensation			1,178						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 costs			366						—						—						—						—						130						496
Lease asset impairments and other charges			138						—						—						—						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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			19,863						2,841						13,013						7,617						8,800						7						52,141
Share-based compensation			1,625						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

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			Three months ended September 30, 2024
			Technology & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			20,334						2,631						12,505						7,867						7,980						34						51,351
Share-based compensation			1,047						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 charges			426						(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 & Shopping						Gaming & Entertainment						Health & Wellness						Connectivity						Cybersecurity & 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 amortization			25,313						2,869						13,849						9,397						8,505						38						59,971
Share-based compensation			1,164						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.

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