Ziff Davis Raises FY25 Revenue View, Backs Adjusted EPS Estimate

Ziff Davis raised its FY25 adjusted EPS view to $6.64-$7.28, above the consensus of $6.80. The company also raised its FY25 revenue view to $1.442B-$1.502B, exceeding the consensus of $1.46B.

Ziff Davis (ZD) has reported strong financial results for the second quarter of 2025, with revenue up 9.8% compared to the same period last year, beating analyst expectations [1]. The digital media and internet company also reported adjusted earnings per share (EPS) of $1.24, surpassing the consensus estimate of $1.19. These results were driven by robust performance in the Connectivity and Health & Wellness segments, which grew by 14.2% and 15.7% year-over-year, respectively.

Ziff Davis has reaffirmed its fiscal year 2025 guidance, with revenue now expected to range between $1.442 billion and $1.502 billion, and adjusted EBITDA projected between $505 million and $542 million. The company also raised its adjusted diluted EPS forecast to $6.64 to $7.28, exceeding the consensus estimate of $6.80 [1].

The company's stock has been trading at a valuation multiple of 4 times the next 12-month earnings, compared to a P/E ratio of 4 three months ago [1]. Analysts have maintained a "hold" rating on the shares, with a breakdown of 3 "strong buy" or "buy" recommendations, 4 "hold" ratings, and no "sell" or "strong sell" recommendations. The average consensus recommendation for the online services peer group is "buy," and the median 12-month price target for Ziff Davis is $42.50, about 29.9% above its August 5 closing price of $29.81 [1].

In contrast, Dynatrace (DT), a software company specializing in AI-powered observability and automation tools for large enterprises, missed analyst expectations for both revenue and Non-GAAP EPS in the first quarter of fiscal 2026. The company reported GAAP revenue of $477 million and Non-GAAP EPS of $0.42, falling short of analyst estimates near $534 million and $0.43, respectively [2]. Despite missing consensus, Dynatrace posted 20% GAAP revenue growth year-over-year and improved non-GAAP profitability for FY2025. The company's annual recurring revenue (ARR) reached $1.82 billion, up 18% from the prior year, while subscription revenue grew 20%.

For fiscal 2026, Dynatrace has raised its guidance, now expecting total revenue between $1.97 billion and $1.985 billion, and Non-GAAP EPS in the $1.58–$1.61 range. The company's stock has been trading at a valuation multiple of 4 times the next 12-month earnings, compared to a P/E ratio of 4 three months ago [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXBBD121:0-digital-media-firm-ziff-davis-q2-revenue-beats-expectations/
[2] https://www.theglobeandmail.com/investing/markets/stocks/DT/pressreleases/33931281/dynatrace-dt-q1-revenue-rises-20/