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Ziff Davis, Inc. (ZD)
NASDAQ:ZD
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Ziff Davis
(NASDAQ:ZD)
68Neutral
Ziff Davis (ZD) vs. S&P 500 (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)590.35K
Price to Earnings (P/E)24.8
Beta (1Y)1.38
Revenue Growth3.24%
EPS Growth36.80%
CountryUS
Employees3,800
SectorCommunication Services
Sector Strength82
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.14
Shares Outstanding42,916,866
10 Day Avg. Volume531,899
30 Day Avg. Volume590,354
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.17
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.44
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$47.00Price Target Upside52.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Ziff Davis 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 Financial Statement Overview
Summary
Ziff Davis, Inc. exhibits a solid financial standing with strong cash flow and improved net income. Despite fluctuations in operational margins and substantial debt compared to equity, effective cost management and robust cash generation enhance the company's financial stability.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.―
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
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.―
| 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 Technical Analysis
Negative
30.91
Price Trends
35.72
Negative
44.50
Negative
46.86
Negative
Market Momentum
-1.34
Negative
40.24
Neutral
69.49
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 30.91 is below the 20-day moving average (MA) of 31.07, below the 50-day MA of 35.72, and below the 200-day MA of 46.86, indicating a bearish trend. The MACD of -1.34 indicates Negative momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZD.
Ziff Davis Risk Analysis
Ziff Davis disclosed 50 risk factors in its most recent earnings report. Ziff Davis 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.71B | 87.67 | 4.30% | ― | 5.59% | ― | |
70 Outperform | $1.19B | 31.86 | 3.94% | ― | 11.75% | 401.94% | |
69 Neutral | $1.48B | 11.30 | 13.46% | ― | -1.18% | 100.33% | |
68 Neutral | $1.35B | 24.78 | 4.12% | ― | 3.24% | 36.80% | |
67 Neutral | $2.46B | 297.97 | 0.19% | ― | 9.86% | ― | |
60 Neutral | $13.44B | 7.03 | -2.73% | 3.78% | 2.17% | -39.43% | |
58 Neutral | $1.00B | ― | -0.29% | ― | 88.81% | 99.16% |
* Communication Services Sector Average
Performance Comparison
ZD
Ziff Davis
30.91
-24.73
-44.45%
STGW
Stagwell
4.87
-2.11
-30.23%
QNST
Quinstreet
14.86
-3.09
-17.21%
CRTO
Criteo SA
28.46
-8.91
-23.84%
MGNI
Magnite
15.10
5.96
65.21%
IAS
Integral Ad Science
7.72
-1.99
-20.49%
Ziff Davis Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -4.54%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with growth in key segments like Tech and Shopping, Health and Wellness, and strong advertising performance. However, challenges remain in the Cybersecurity and Martech segment, and the lawsuit against OpenAI underscores ongoing issues with content protection.Q1-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Q1 2025 revenues were $328.6 million, reflecting a growth of 4.5% compared to Q1 2024. Adjusted EBITDA was $100.2 million with a margin of 30.5%, exceeding internal expectations.
Tech and Shopping Segment Performance
Tech and Shopping revenues grew by nearly 18% due to organic growth and M&A, with adjusted EBITDA growing nearly 44%.
Advertising and Performance Marketing Growth
Q1 2025 advertising and performance marketing revenue grew by 12.3% compared to the prior period.
Health and Wellness Segment Rebound
Health and wellness grew revenues over 7% and adjusted EBITDA by over 12%, indicating a promising return to high-single-digit growth.
Strong Capital Allocation and Share Buybacks
The company bought back 4.25 million shares over the last four quarters, representing roughly 10% of total shares outstanding.
Negative Updates
Cybersecurity and Martech Segment Decline
The segment experienced a nearly 11% decline in revenues, partly due to timing benefits in the prior year's first quarter.
Gaming and Entertainment EBITDA Decline
Adjusted EBITDA for Gaming and Entertainment declined due to revenue mix and expense timing, though expected to reverse in Q2.
Subscription and Licensing Revenue Decline
Subscription and licensing revenues declined by 2% in Q1 2025.
Lawsuit Against OpenAI
Ziff Davis filed a lawsuit against OpenAI over unauthorized use of its content, highlighting challenges in protecting intellectual property.
Company Guidance
During the Ziff Davis Q1 2025 earnings call, CEO Vivek Shah and CFO Bret Richter provided guidance reaffirming full-year revenue growth of 5% and adjusted EBITDA growth of 6% at the midpoint. The company reported revenues of $328.6 million for Q1 2025, a 4.5% increase compared to Q1 2024, and adjusted EBITDA of $100.2 million with a margin of 30.5%. Segment performance varied, with Tech and Shopping revenues growing nearly 18%, Gaming and Entertainment by 4%, Health and Wellness over 7%, and Connectivity by 5%. However, Cybersecurity and Martech declined by nearly 11% due to timing benefits realized in the prior year. The company remains focused on strategic M&A, with three acquisitions completed in 2025 so far, and plans to enhance shareholder value through continued share buybacks. Despite macroeconomic uncertainties, Ziff Davis is optimistic about sustained advertising growth, particularly in Tech and Shopping, Gaming and Entertainment, and Health and Wellness, while also anticipating benefits from the upcoming launch of Wi-Fi 7 and Nintendo Switch 2.Ziff Davis Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Ziff Davis Announces Segment Realignment After Annual Meeting
Neutral
May 9, 2025
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.
Spark’s Take on ZD Stock
According to Spark, TipRanks’ AI Analyst, ZD is a Neutral.
Ziff Davis, Inc. scores a 64, reflecting solid financial performance and a positive outlook for future growth. However, the stock’s technical indicators are bearish, and its valuation appears high. While earnings guidance is optimistic, recent challenges in specific segments warrant a cautious approach.
To see Spark’s full report on ZD stock, click here.
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Ziff Davis Reports Q1 2025 Financial Results
Positive
May 9, 2025
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.
Spark’s Take on ZD Stock
According to Spark, TipRanks’ AI Analyst, ZD is a Neutral.
Ziff Davis, Inc. scores 63 due to solid financial performance and a positive outlook for future growth. However, current bearish technical indicators and valuation concerns temper enthusiasm. While earnings guidance is optimistic, recent segment challenges warrant caution.
To see Spark’s full report on ZD stock, click here.
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.