Ziff Davis, Inc. (ZD) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 539.51K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.36
• Revenue Growth: 3.24%
• EPS Growth: 36.80%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 79
• Industry: Advertising Agencies
• EPS (TTM): 1.14
• Shares Outstanding: 42,087,574
• 10 Day Avg. Volume: 490,035
• 30 Day Avg. Volume: 539,510
• PEG Ratio: -0.71
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.13
• Enterprise Value/Market Cap: 3.18
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 3.08
• 1Y Price Target: $39.50
• Price Target Upside: 28.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $36.00 ▲(16.96%Upside)

Ziff Davis achieves a strong overall score driven by robust financial performance and a positive earnings call outlook. Challenges in certain business segments and moderate valuation scores slightly offset the positive sentiment. The technical analysis indicates a neutral trend, reflecting a balanced market view.

Positive Factors

Advertising Impact

Ziff Davis is operating through the macro with little impacts to its advertising businesses and seemingly no disruption to its M&A pipeline.

Business Segments

Management believes the business is improving and could see all five segments return to growth in 2025, which would be a clear positive.

Revenue Growth

Management expects accelerating total revenue growth in 2Q, ahead of expectations, driven by improvements across multiple business lines.

Negative Factors

Advertising Growth Guidance

The FY25 advertising growth guide for 4-6% Y/Y was ~200bps below the Street at the midpoint.

B2B Business

Organic total revenue continues to be negative but did improve from a previous decline, with the B2B business being a primary drag due to management's focus on improving profitability.

GenAI Search Risk

The risk from GenAI Search could prove an overhang, with some resolution needed, despite ZD continuing to see no traffic/CTR headwinds yet.

Ziff Davis, Inc. Business Overview & Revenue Model

Company Description

Ziff 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 Money

Ziff Davis makes money primarily through advertising, subscription, and licensing revenues generated from its portfolio of digital media and internet properties. Advertising revenue is a significant component, derived from display ads, video ads, and sponsored content on its websites and platforms. Subscription services also contribute to its earnings, with customers paying for premium content, software solutions, and tools. Additionally, Ziff Davis earns through e-commerce and affiliate marketing by driving sales and earning commissions from partner retailers. Strategic partnerships and acquisitions further enhance its revenue by expanding its market reach and diversifying its offerings.

Ziff Davis, Inc. Financial Statement Overview

Summary

Ziff Davis demonstrates robust financial performance with consistent revenue growth and strong profitability margins. While the balance sheet remains healthy, a decrease in cash reserves and free cash flow necessitates careful capital allocation.

Income Statement

Ziff Davis shows a steady growth trajectory with a TTM revenue increase to $1.42 billion, up from $1.40 billion in the previous year. The gross profit margin remains strong at approximately 83.9%, and the net profit margin has improved to 5.4% in the TTM period. However, a slight decline in EBIT margin to 8.2% indicates some increased operational costs compared to prior periods.

Balance Sheet

The company's balance sheet reflects a strong equity base with an equity ratio of 51.8%, indicating stable financial health. The debt-to-equity ratio stands at 0.47, showcasing manageable leverage. However, a slight decrease in cash reserves compared to previous periods may pose a liquidity consideration.

Cash Flow

Cash flow analysis indicates a solid operating cash flow to net income ratio of 4.4, suggesting efficient cash generation from operations. However, the free cash flow has decreased to $231 million in the TTM period from $284 million, indicating a need for careful capital expenditure management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.42B	1.40B	1.36B	1.39B	1.42B	1.49B
	Gross Profit
1.19B	1.20B	1.17B	1.20B	1.23B	1.26B
	EBIT
116.14M	113.65M	132.61M	198.94M	166.43M	334.61M
	EBITDA
329.21M	319.10M	353.54M	411.81M	683.16M	380.96M
	Net Income Common Stockholders
76.66M	63.05M	41.50M	63.76M	351.70M	150.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
431.01M	505.88M	764.72M	711.21M	924.04M	243.31M
	Total Assets
3.52B	3.70B	3.47B	3.53B	3.76B	3.67B
	Total Debt
864.83M	864.28M	1.00B	1.06B	1.17B	1.71B
	Net Debt
433.82M	358.40M	263.70M	402.41M	476.65M	1.47B
	Total Liabilities
1.69B	1.89B	1.58B	1.64B	1.80B	2.45B
	Stockholders Equity
1.82B	1.81B	1.89B	1.89B	1.96B	1.21B
Cash Flow		Free Cash Flow
231.25M	283.68M	211.23M	230.24M	401.75M	384.41M
	Operating Cash Flow
335.37M	390.31M	319.96M	336.44M	515.57M	480.08M
	Investing Cash Flow
-290.80M	-297.45M	-127.41M	-220.77M	59.09M	-586.22M
	Financing Cash Flow
-349.69M	-320.99M	-114.79M	-140.83M	-113.59M	-234.63M

Ziff Davis, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 30.78 is below the 20-day moving average (MA) of 32.32, below the 50-day MA of 32.06, and below the 200-day MA of 45.43, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZD.

Ziff Davis, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGNI	78 Outperform	$2.49B	86.23	4.30%	―	5.59%	―
IAS	77 Outperform	$1.36B	28.70	4.80%	―	13.84%	1494.51%
ZD	72 Outperform	$1.30B	19.24	4.12%	―	3.24%	36.80%
CRTO	71 Outperform	$1.29B	9.85	13.46%	―	-1.18%	100.33%
STGW	70 Outperform	$1.34B	947.06	0.19%	―	9.86%	―
QNST	62 Neutral	$883.32M	―	-0.29%	―	88.81%	99.16%
Sector *	61 Neutral	$14.64B	5.81	-3.99%	6.03%	2.71%	-31.56%

Ziff Davis, Inc. Corporate Events

Ziff Davis to Join J.P. Morgan Conference

On May 14, 2025, Ziff Davis, Inc. will participate in the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference, which will be webcast online.

The most recent analyst rating on (ZD) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.

Ziff Davis Announces Segment Realignment After Annual Meeting

On May 7, 2025, Ziff Davis held its Annual Meeting of Stockholders virtually, where all eight director nominees were elected, and key proposals, including the ratification of KPMG LLP as auditors and executive compensation, were approved. Additionally, the company announced a realignment of its operating segments into five categories, which include Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech, reflecting changes in internal reporting and aiming to enhance operational focus.

Ziff Davis Reports Q1 2025 Financial Results

Ziff Davis reported its unaudited financial results for the first quarter of 2025, showing a 4.5% increase in revenues to $328.6 million compared to the same period in 2024. Despite a decrease in income from operations and adjusted EBITDA, net income saw a significant rise of 128.1% to $24.2 million. The company remains optimistic about its prospects for the year, driven by accelerating revenue growth, a healthy M&A cadence, and an active share buyback program.