Ziff Davis Delivers Strong Q3 2024 Results, Reaffirms 2024 Guidance

Ziff Davis, Inc. (NASDAQ: ZD), a vertically focused digital media and internet company, reported its third quarter 2024 financial results, demonstrating a solid performance and reaffirming its 2024 guidance. The company's balanced business model, strategic acquisitions, and organic growth strategies have contributed to its revenue growth and sustainability.

Ziff Davis' revenue growth trajectory has been steady over the past year, with quarterly results showing consistent improvement. In Q3 2024, revenues increased by 3.6% year-over-year (YoY) to $325.8 million, driven by growth in both Digital Media (2.8% YoY) and Cybersecurity and Martech (4.2% YoY). Income from operations also saw significant growth, increasing by 32.5% YoY in Q3 2024. Adjusted EBITDA margin improved from 30.7% in Q3 2023 to 32.3% in Q3 2024, indicating enhanced operational efficiency. Despite a slight decrease in net cash provided by operating activities in Q3 2024, free cash flow remained strong, with a 6.8% YoY increase.



Ziff Davis' adjusted EBITDA margin and adjusted net income per diluted share (Adjusted diluted EPS) compare favorably to its historical performance and industry peers. In Q3 2024, adjusted EBITDA margin was 32.3%, up 1.6% from Q3 2023. Adjusted diluted EPS increased 16.2% to $1.35, driven by strong income from operations and a lower effective tax rate. These metrics indicate a solid financial performance for Ziff Davis.



The key drivers behind Ziff Davis' reaffirmed 2024 guidance are its strong performance in digital media and cybersecurity/martech segments, as well as its balanced business model focusing on subscription and licensing revenues. The company's long-term growth strategy is evident in its acquisition strategy, deploying $52.7 million in Q3 2024 to expand its portfolio. Ziff Davis' reaffirmed guidance, with revenue projections between $1,411.0 million and $1,471.0 million, aligns with its focus on strategic growth and diversification.

Ziff Davis' cash flow management and balance sheet strength have enabled the company to invest in growth opportunities and acquisitions. In Q3 2024, the company generated $82.7 million in net cash provided by operating activities and ended the quarter with approximately $937.8 million in cash, cash equivalents, and investments. This financial strength allows Ziff Davis to pursue strategic acquisitions while maintaining a solid financial position.

In conclusion, Ziff Davis' strong Q3 2024 financial results and reaffirmed 2024 guidance reflect the company's balanced business model, strategic acquisitions, and organic growth strategies. The company's solid financial performance, coupled with its robust cash flow management and balance sheet strength, positions it well for continued growth and success in the digital media and internet landscape.