The following is a summary of the Ziff Davis, Inc. (ZD) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ziff Davis reported Q1 2024 revenue growth of 2.4%, marking a reversal after six consecutive quarters of flat or declining revenues.

• The company has diversified revenue streams with subscription and licensing revenues now representing over 42% of total revenues.

• A significant growth driver in Q1 was the launch of SaaS offerings, Ekahau Measure and Measure Plus in the connectivity business which represented 20% of Ekahau software sales.

• Ziff Davis reported Q1 2024 revenues of $314.5 million, and adjusted EBITDA was $100.8 million reflecting Y-o-Y growth of 6.8%.

• The company also reported Q1 adjusted diluted EPS of $1.27, a 15.5% increase compared to the prior year.

• Despite a decline in core shopping business, growth was driven by five verticals and offset by the recent acquisition of TDS.

• The company ended the quarter with $735 million in cash and cash equivalents and $156 million in short and long-term investments.

Business Progress:

• Ziff Davis continues to invest in AI to develop new product experiences and streamline SEO and improve search functionality across all platforms.

• The company is actively managing the utilization of publisher content to ensure fair compensation for copyrighted material.

• Ziff Davis displayed commitment to sustainability with a reported decrease in emissions by 38% and increases in diversity among leadership roles.

• In terms of growth strategy, the focus remains on exploring M&A opportunities, both within existing verticals and in new areas. The company has already completed its first acquisition (TDS) in 2024 and plans to continue to leverage its balance sheet to support future M&A investments.

• Ziff Davis is focused on maintaining a balanced business model including both advertising and subscription, with advancements in AI expected to significantly improve advertising performance. The company expects to see improvements in pressurized segments through more effective management strategies.

More details: Ziff Davis IR

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