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Ziff Davis, Inc. (ZD)
:ZD
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Ziff Davis, Inc.
(NASDAQ:ZD)
64Neutral
Ziff Davis, Inc. (ZD) vs. S&P 500 (SPY)
Market Cap
$1.62B
Dividend YieldN/A
Average Volume (3M)640.97K
Price to Earnings (P/E)30.4
Beta (1Y)1.68
Revenue Growth2.76%
EPS Growth58.98%
CountryUS
Employees3,800
SectorCommunication Services
Sector Strength70
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.27
Shares Outstanding42,845,040
10 Day Avg. Volume605,154
30 Day Avg. Volume640,966
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)N/A
Price to Sales (P/S)1.28
Price to Cash Flow (P/CF)2.80
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$59.33Price Target Upside57.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Ziff Davis, Inc. Business Overview & Revenue Model
Company DescriptionZiff Davis, Inc., together with its subsidiaries, provides internet information and services in the United States, Canada, Ireland, and internationally. It operates in two segments, Digital Media, and Cybersecurity and Martech. The Digital Media segment operates a portfolio of web properties and apps, which include IGN, RetailMeNot, Mashable, PCMag, Humble Bundle, Speedtest, Offers, Black Friday, MedPageToday, Everyday Health, BabyCenter, and What to Expect, among others in the technology, shopping, entertainment, and health and wellness markets. The Cybersecurity and Martech segment offers cloud-based subscription services to consumers and businesses, including cybersecurity, privacy, and marketing technology. The company was formerly known as j2 Global, Inc. and changed its name to Ziff Davis, Inc. in October 2021. Ziff Davis, Inc. was incorporated in 2014 and is headquartered in New York, New York.
How the Company Makes MoneyZiff Davis, Inc. generates revenue through a variety of channels, primarily driven by digital advertising, subscriptions, and e-commerce. Its digital advertising revenue comes from display ads, video ads, and affiliate marketing on its owned and operated websites. The company also earns money from subscription services offered by certain brands, providing premium content and features to subscribers. Additionally, Ziff Davis leverages e-commerce by selling products directly through its platforms or earning commissions through affiliate links. Strategic partnerships and acquisitions further enhance its revenue streams by expanding its reach and diversifying its offerings.
Ziff Davis, Inc. Financial Statement Overview
Summary
Ziff Davis, Inc. demonstrates a solid financial position with robust cash flow and improved net income. While leverage has been reduced, it remains a risk factor. Strength in cash generation and effective cost management enhance the company's financial stability, positioning it well for future growth despite fluctuations in operational margins.Income Statement
Ziff Davis, Inc. has shown consistent revenue with a slight decrease in recent years. The gross profit margin is strong, and net income has improved significantly from 2023 to 2024, indicating better cost management or revenue streams. However, EBIT and EBITDA margins have fluctuated, suggesting some instability in operational efficiency.75
Positive
Balance Sheet
The company maintains a healthy equity ratio, suggesting solid asset management. The debt-to-equity ratio has improved, indicating better leverage management over time. However, total debt remains substantial compared to equity, posing potential risks if earnings do not sustain growth.70
Positive
Cash Flow
Operating cash flow has shown a positive trend, reflecting strong cash generation capabilities. Free cash flow has also grown, highlighting efficient capital expenditure management. The operating cash flow to net income ratio is favorable, suggesting strong cash earnings quality.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.40B | 1.36B | 1.39B | 1.42B | 1.49B | Gross Profit |
| 1.20B | 1.17B | 1.20B | 1.23B | 1.26B | EBIT |
| 113.65M | 132.61M | 198.94M | 166.43M | 334.61M | EBITDA |
| 319.10M | 353.54M | 411.81M | 683.16M | 380.96M | Net Income Common Stockholders |
| 63.05M | 41.50M | 63.76M | 351.70M | 150.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 505.88M | 764.72M | 711.21M | 924.04M | 243.31M | Total Assets |
| 3.70B | 3.47B | 3.53B | 3.76B | 3.67B | Total Debt |
| 864.28M | 1.00B | 1.06B | 1.17B | 1.71B | Net Debt |
| 358.40M | 263.70M | 402.41M | 476.65M | 1.47B | Total Liabilities |
| 1.89B | 1.58B | 1.64B | 1.80B | 2.45B | Stockholders Equity |
| 1.81B | 1.89B | 1.89B | 1.96B | 1.21B |
| Cash Flow | Free Cash Flow | |||
| 283.68M | 211.23M | 230.24M | 401.75M | 384.41M | Operating Cash Flow |
| 390.31M | 319.96M | 336.44M | 515.57M | 480.08M | Investing Cash Flow |
| -297.45M | -127.41M | -220.77M | 59.09M | -586.22M | Financing Cash Flow |
| -320.99M | -114.79M | -140.83M | -113.59M | -234.63M |
Ziff Davis, Inc. Technical Analysis
Negative
37.75
Price Trends
46.21
Negative
51.16
Negative
49.54
Negative
Market Momentum
-1.91
Negative
31.57
Neutral
9.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Negative. The current price of 37.75 is below the 20-day moving average (MA) of 40.33, below the 50-day MA of 46.21, and below the 200-day MA of 49.54, indicating a bearish trend. The MACD of -1.91 indicates Negative momentum. The RSI at 31.57 is Neutral, neither overbought nor oversold. The STOCH value of 9.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZD.
Ziff Davis, Inc. Risk Analysis
Ziff Davis, Inc. disclosed 50 risk factors in its most recent earnings report. Ziff Davis, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ziff Davis, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.11B | 27.99 | 15.92% | 1.04% | 6.59% | 26.68% | |
65 Neutral | $16.04B | 37.54 | 5.23% | 0.74% | -1.51% | 82.74% | |
64 Neutral | $1.62B | 30.44 | 3.40% | ― | 2.76% | 58.98% | |
63 Neutral | $3.27B | ― | -9.29% | ― | -12.78% | -343.35% | |
62 Neutral | $37.09B | ― | -51.45% | ― | 1.00% | -148.89% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
44 Neutral | $425.90M | ― | -11.19% | ― | -5.79% | -10.12% |
* Communication Services Sector Average
Performance Comparison
ZD
Ziff Davis, Inc.
38.63
-21.26
-35.50%
NYT
New York Times
49.60
6.81
15.91%
NWSA
News Corp
27.06
1.50
5.87%
TTWO
Take-Two
211.10
59.37
39.13%
GCI
Gannett
3.25
0.91
38.89%
IAC
IAC/InterActive
40.02
-3.32
-7.66%
Ziff Davis, Inc. Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -21.39% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Ziff Davis experienced notable revenue and EPS growth in 2024, with strategic capital allocation and a positive outlook for 2025. However, the Q4 revenue shortfall and challenges in certain segments like Connectivity and Humble Games were significant setbacks.Highlights
Revenue and EPS Growth
Ziff Davis achieved a 5.9% revenue growth for Q4 2024 and a 10.7% increase in adjusted diluted EPS, marking its best revenue growth quarter of the year.
Return to Revenue Growth
Fiscal Year 2024 revenue increased by 2.8% with an adjusted EBITDA growth of 2.3%, signaling a return to growth for the company.
Strong Capital Allocation
In 2024, over $225 million was deployed for acquisitions, and more than $185 million was used for share repurchases, retiring 7.6% of shares outstanding at the start of the year.
Positive Outlook for 2025
The company projects an acceleration of revenue growth to 5% and adjusted EBITDA growth to 6% in 2025, with all segments expected to grow for the first time in several years.
AI Initiatives and Innovations
AI-powered features in the Lose It! app were highlighted by CNN, and Health eCareers reported an 18% increase in engagement with their AI-powered job search functionality.
Lowlights
Q4 Revenue Shortfall
Q4 2024 revenues fell short of expectations, largely due to underperformance in the Humble Games Publishing and Connectivity businesses, resulting in a $10 million revenue miss.
Challenges in Connectivity and Humble Games
The Connectivity segment did not see expected large deal activity, and Humble Games Publishing underperformed due to delayed releases and some underperforming titles.
Decline in Cybersecurity and Martech
The Cybersecurity and Martech segment saw a revenue decline of nearly 3% in 2024, though this was an improvement compared to the previous year's decline.
Company Guidance
During the call, Ziff Davis provided guidance for 2025, projecting an acceleration in revenue growth from 2024's 2.8% to a midpoint of 5%, and an improvement in adjusted EBITDA growth from 2.3% to 6%. The company anticipates growth in all five reportable segments, with particular strength expected in the Tech & Shopping segment, which is forecasted to be the strongest grower in 2025, and the Connectivity segment, which is seen as the most valuable in the portfolio. Ziff Davis also highlighted its robust free cash flow, which reached $283 million in 2024, and a planned shift from two to five reportable segments to enhance transparency and investor understanding. Additionally, the company expects advertising and performance marketing revenue to grow in the mid-single-digits, with subscription and licensing revenue growing in the low to mid-single-digits. The firm maintains a strong balance sheet with $506 million in cash and cash equivalents, supporting its active capital allocation strategy, which includes M&A opportunities and potential share repurchases.Ziff Davis, Inc. Corporate Events
Financial Disclosures
Ziff Davis Reports Q4 2024 Financial Results
Neutral
Feb 25, 2025
Ziff Davis, Inc. reported its unaudited financial results for the fourth quarter and full year of 2024, showing a revenue increase of 5.9% for the quarter and 2.8% for the year. Despite a decrease in income from operations due to goodwill impairments, the company experienced growth in net income and adjusted EBITDA, and introduced a new segment reporting structure to enhance investor understanding.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.