Ziff Davis, Inc. ((ZD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Ziff Davis, Inc. recently held its earnings call, revealing a generally positive sentiment with strong performance across most segments. The company reported significant revenue and EBITDA growth, alongside successful acquisitions and share repurchases, indicating confidence in its future. However, minor challenges were noted in the Cybersecurity & Martech segment and foreign exchange impacts on EPS.
Strong Revenue and EBITDA Growth
The earnings call highlighted Ziff Davis’s impressive financial performance, with revenues growing nearly 10% and adjusted EBITDA increasing by nearly 12% year-over-year. This marks the strongest quarter of revenue growth since 2021, showcasing the company’s robust operational capabilities.
Segment Revenue Growth
Four out of five reportable segments experienced revenue growth in Q2 2025. Notably, Tech & Shopping’s revenues grew by over 11%, Gaming & Entertainment by nearly 8%, Health & Wellness by nearly 16%, and Connectivity by over 14%, reflecting the company’s diverse and expanding portfolio.
Successful Acquisitions and Share Repurchase
Ziff Davis successfully completed five tuck-in acquisitions in the first half of the year and repurchased nearly 1.4 million shares in Q2 2025. These strategic moves underscore the company’s commitment to growth and shareholder value.
Health & Wellness and Connectivity Segments Performance
The Health & Wellness segment had a record quarter, with revenues up nearly 16%, while the Connectivity segment posted a 14% revenue increase, marking a return to double-digit organic growth. These segments are pivotal to the company’s overall success.
Cybersecurity & Martech Segment Decline
The Cybersecurity & Martech segment saw a slight decline in revenues, less than 1% for the quarter. Despite this, the company remains optimistic about a return to growth in the upcoming quarters.
Challenges with Foreign Exchange
Foreign exchange rate changes negatively impacted EPS by approximately $0.10 per diluted share. This challenge highlights the complexities of operating in a global market.
Forward-Looking Guidance
Ziff Davis provided optimistic forward-looking guidance, projecting over 7% revenue growth, nearly 10% adjusted EBITDA growth, and 10% adjusted EPS growth for fiscal 2025. The company anticipates continued momentum in the second half of the year, with Cybersecurity & Martech expected to return to growth in Q3.
In conclusion, Ziff Davis’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. With strong revenue and EBITDA growth, successful acquisitions, and a promising outlook for the future, the company is well-positioned to continue its upward trajectory, despite minor challenges in specific segments.