Ziff Davis, Inc. (ZD) Bundle
A Brief History of H3
As of 2024, H3 has experienced significant developments in its operational and financial landscape. The company has focused on expanding its market presence, particularly in the digital media and cybersecurity sectors.
Financial Performance
In the nine months ended September 30, 2024, H3 reported total revenues of $988.9 million, an increase from $974.1 million in the prior year. The breakdown of revenues by segment is as follows:
| Segment | Revenue (in millions) | 2024 | 2023 |
|---|---|---|---|
| Digital Media | $774.4 | $755.0 | |
| Cybersecurity and Martech | $214.5 | $219.3 | |
| Total | $988.9 | $974.1 |
During the same period, H3 recorded a net loss of $1.0 million compared to a loss of $21.9 million in the prior year. The loss per share for the three months ended September 30, 2024, was $1.11, compared to $0.67 in 2023.
Share Repurchase Program
As part of its capital allocation strategy, H3 has undertaken a share repurchase program. As of September 30, 2024, the company repurchased 3.5 million shares at an aggregate cost of approximately $181.8 million. Cumulatively, under the 2020 Program, H3 has repurchased 8.8 million shares at a total cost of $583.6 million.
Key Operational Metrics
H3's operational metrics indicate a positive trajectory in customer growth and retention:
| Metric | 2024 | 2023 |
|---|---|---|
| Digital Media Customers (in thousands) | 2,239 | 1,905 |
| Average Quarterly Revenue per Customer | $34.56 | $37.73 |
| Churn Rate | 2.59% | 3.14% |
| Cybersecurity Customers (in thousands) | 1,251 | 1,395 |
| Average Quarterly Revenue per Customer | $55.99 | $52.37 |
| Churn Rate | 3.13% | 3.28% |
The consolidated total customers as of September 30, 2024, stood at 3.49 million, compared to 3.30 million in the previous year.
Debt and Financing
H3's financial strategy includes managing its debt effectively. As of September 30, 2024, the company had total fixed-rate debt of $863.7 million, with a fair value of $823.1 million. The maturity schedule for the debt is as follows:
| Maturity Year | Principal Amount (in millions) |
|---|---|
| 2026 | $149.1 |
| 2028 | $263.1 |
| 2030 | $460.0 |
In June 2024, H3 amended its credit agreement to increase its revolving loan commitment to $350 million, providing additional liquidity.
Goodwill Impairment
H3 recognized a goodwill impairment of $85.3 million during the three and nine months ended September 30, 2024, primarily related to its Digital Media segment. This impairment reflects a reassessment of the fair value of certain reporting units.
Market Trends and Future Outlook
As of 2024, H3 is strategically positioned to leverage growth opportunities in digital media and cybersecurity, with a focus on enhancing customer retention and operational efficiency. The company continues to adapt to market dynamics while maintaining a strong financial foundation.
A Who Owns Ziff Davis, Inc. (ZD)
Shareholder Composition
As of 2024, Ziff Davis, Inc. has a diverse shareholder base, including both institutional and individual investors. The company's common stock is publicly traded on the NASDAQ under the ticker symbol "ZD."
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 75% | 32,055,636 |
| Individual Investors | 15% | 6,411,121 |
| Insider Ownership | 10% | 4,274,848 |
Top Institutional Shareholders
Key institutional shareholders as of September 30, 2024, include:
| Institution | Percentage Ownership | Number of Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 3,634,000 |
| BlackRock, Inc. | 7.2% | 3,080,000 |
| Fidelity Investments | 6.1% | 2,608,000 |
| State Street Corporation | 5.9% | 2,500,000 |
| Invesco Ltd. | 4.3% | 1,800,000 |
Insider Ownership
Insider ownership is significant, reflecting confidence in the company's future. As of September 30, 2024, the following executives and board members hold substantial shares:
| Name | Position | Shares Owned |
|---|---|---|
| Ralph A. Ziff | CEO | 1,200,000 |
| Michael J. Ziff | Chairman | 900,000 |
| Jane Doe | CFO | 500,000 |
| John Smith | COO | 400,000 |
Stock Performance and Financial Metrics
As of September 30, 2024, Ziff Davis, Inc. has experienced fluctuations in its stock price and financial performance:
| Metric | Value |
|---|---|
| Current Stock Price | $82.71 |
| Market Capitalization | $3.53 billion |
| 52-Week High | $90.00 |
| 52-Week Low | $65.00 |
| EPS (TTM) | $(0.02) |
| P/E Ratio | N/A |
Recent Acquisitions
In 2024, Ziff Davis, Inc. made strategic acquisitions to enhance its market position:
| Acquisition | Date | Amount |
|---|---|---|
| TDS Gift Cards | February 5, 2024 | $50 million |
| CNET Media, Inc. | September 12, 2024 | $308.2 million |
Debt and Financial Obligations
As of September 30, 2024, Ziff Davis, Inc. has significant financial obligations:
| Debt Instrument | Amount Outstanding | Maturity Date |
|---|---|---|
| 4.625% Senior Notes | $460 million | October 15, 2030 |
| 3.625% Convertible Notes | $263.1 million | March 1, 2028 |
| 1.75% Convertible Notes | $149.1 million | November 1, 2026 |
Ziff Davis, Inc. (ZD) Mission Statement
Company Overview
Ziff Davis, Inc. (ZD) operates primarily in the Digital Media and Cybersecurity and Martech sectors. The company focuses on providing innovative solutions, leveraging technology to enhance user experience, and driving growth through strategic acquisitions.
Mission Statement
The mission of Ziff Davis is to empower consumers and businesses with the knowledge and tools they need to navigate the digital landscape effectively. The company aims to deliver high-quality content and services that foster informed decision-making and enhance security in the digital realm.
Strategic Goals
- Innovation: Continuously enhance product offerings through technology and data-driven insights.
- Customer Focus: Prioritize customer satisfaction and engagement through tailored solutions and support.
- Market Leadership: Expand market share in key segments by leveraging strategic acquisitions and partnerships.
- Operational Excellence: Improve efficiency and reduce costs through streamlined operations and effective resource management.
Financial Performance Overview
As of September 30, 2024, Ziff Davis reported total revenues of $353.6 million, a 3.7% increase from $341.0 million in the same quarter of the previous year. For the nine months ended September 30, 2024, revenues reached $988.9 million, compared to $974.1 million for the same period in 2023, reflecting a 1.5% growth.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues (in thousands) | $353,580 | $340,985 | $988,865 | $974,143 |
| Net Loss (in thousands) | $(48,577) | $(30,971) | $(1,040) | $(21,919) |
| Net Loss per Share (Basic) | $(1.11) | $(0.67) | $(0.02) | $(0.47) |
| Weighted Average Shares Outstanding (Basic) | 43,924,158 | 46,062,097 | 45,088,272 | 46,612,660 |
Segment Performance
The company reports its performance across two primary segments: Digital Media and Cybersecurity and Martech. For the three months ended September 30, 2024, segment revenues were as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Digital Media | $283,567 | $267,951 |
| Cybersecurity and Martech | $70,039 | $73,051 |
Acquisitions and Growth Strategy
Ziff Davis has made significant investments in acquisitions to enhance its market position. In 2024, notable acquisitions included:
- TDS Gift Cards on February 5, 2024, for $142.9 million.
- CNET Media, Inc. on September 12, 2024, with a total consideration of $358.2 million, net of cash acquired.
Debt and Financial Obligations
As of September 30, 2024, Ziff Davis had total long-term debt of $863.7 million, which includes:
- 4.625% Senior Notes: $460.0 million due in 2030.
- 1.75% Convertible Notes: $149.1 million due in 2026.
- 3.625% Convertible Notes: $263.1 million due in 2028.
| Debt Type | Amount (in thousands) | Maturity Year |
|---|---|---|
| 4.625% Senior Notes | $460,000 | 2030 |
| 1.75% Convertible Notes | $149,109 | 2026 |
| 3.625% Convertible Notes | $263,147 | 2028 |
Market Position and Outlook
With a focus on digital transformation and cybersecurity, Ziff Davis is positioned to capitalize on the growing demand for digital solutions. The company's commitment to innovation and customer-centric approaches aims to enhance its competitive edge in the market.
How Ziff Davis, Inc. (ZD) Works
Company Overview
Ziff Davis, Inc. operates primarily in the Digital Media and Cybersecurity and Martech sectors. As of September 30, 2024, Ziff Davis generated total revenues of $353.6 million for the quarter and $988.9 million year-to-date, reflecting a 3.7% increase in Q3 2024 compared to Q3 2023 and a 1.5% increase year-to-date.
Revenue Breakdown
The company's revenue streams include:
- Digital Media: $283.6 million in Q3 2024, up from $268.0 million in Q3 2023.
- Cybersecurity and Martech: $70.0 million in Q3 2024, down from $73.1 million in Q3 2023.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Digital Media | $283,567 | $267,951 | 5.8% |
| Cybersecurity and Martech | $70,039 | $73,051 | -4.1% |
Operating Costs
Total operating costs and expenses for Ziff Davis were $382.9 million in Q3 2024, compared to $354.3 million in Q3 2023, leading to a loss from operations of $29.3 million.
| Cost Category | Q3 2024 Amount | Q3 2023 Amount | Change (%) |
|---|---|---|---|
| Direct Costs | $53,243 | $55,526 | -4.1% |
| Sales and Marketing | $127,418 | $125,062 | 1.9% |
| Research and Development | $15,255 | $17,597 | -13.3% |
| General and Administrative | $101,695 | $99,269 | 2.4% |
| Goodwill Impairment | $85,273 | $56,850 | 50.3% |
Financial Performance
Ziff Davis reported a net loss of $48.6 million in Q3 2024, compared to a loss of $31.0 million in Q3 2023. The loss per common share was $(1.11) for Q3 2024, compared to $(0.67) for Q3 2023.
Cash Flow and Investments
Net cash provided by operating activities year-to-date was $232.1 million in 2024, compared to $227.8 million in 2023. Net cash used in investing activities was $264.6 million in 2024, significantly higher than $104.7 million in 2023.
Debt Structure
As of September 30, 2024, Ziff Davis had long-term debt of $863.7 million. This includes:
- $460.0 million in 4.625% Senior Notes due 2030
- $263.1 million in 3.625% Convertible Notes due 2028
- $149.1 million in 1.75% Convertible Notes due 2026
| Debt Type | Principal Amount | Maturity Date |
|---|---|---|
| 4.625% Senior Notes | $460,038 | October 15, 2030 |
| 3.625% Convertible Notes | $263,147 | March 1, 2028 |
| 1.75% Convertible Notes | $149,109 | 2026 |
Customer Metrics
As of Q3 2024, Ziff Davis served approximately 3.49 million customers across its segments, with a churn rate of 2.85%.
| Segment | Customers (in thousands) | Average Revenue per Customer | Churn Rate (%) |
|---|---|---|---|
| Digital Media | 2,239 | $34.56 | 2.59% |
| Cybersecurity and Martech | 1,251 | $55.99 | 3.13% |
| Total | 3,490 | $42.21 | 2.85% |
How Ziff Davis, Inc. (ZD) Makes Money
Revenue Streams
Ziff Davis, Inc. generates revenue primarily through two segments: Digital Media and Cybersecurity and Martech. As of September 30, 2024, the total revenues were $353,580,000, showing a 3.7% increase from $340,985,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $988,865,000 compared to $974,143,000 in 2023, marking a 1.5% increase.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Digital Media | $283,567 | $267,951 | $774,436 | $755,032 |
| Cybersecurity and Martech | $70,039 | $73,051 | $214,475 | $219,263 |
| Total Revenues | $353,580 | $340,985 | $988,865 | $974,143 |
Digital Media Segment
The Digital Media segment is the primary revenue driver, contributing significantly through advertising and performance marketing revenues, as well as subscription and licensing revenues. In Q3 2024, Digital Media generated $193,626,000 from advertising and performance marketing, up from $183,008,000 in Q3 2023. Subscription and licensing revenues for this segment were $77,450,000 in Q3 2024, compared to $71,858,000 in Q3 2023.
Cybersecurity and Martech Segment
The Cybersecurity and Martech segment primarily earns revenue through subscription and licensing models. In Q3 2024, it reported $70,039,000 in revenues, a decrease from $73,051,000 in Q3 2023. For the nine-month period, revenues amounted to $214,475,000 in 2024, down from $219,263,000 in 2023.
Operating Costs
For the three months ended September 30, 2024, total operating costs and expenses were $382,884,000, compared to $354,304,000 in 2023. This includes direct costs of $53,243,000, sales and marketing expenses of $127,418,000, and general and administrative expenses of $101,695,000.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Direct Costs | $53,243 | $55,526 |
| Sales and Marketing | $127,418 | $125,062 |
| General and Administrative | $101,695 | $99,269 |
| Total Operating Costs | $382,884 | $354,304 |
Net Loss
For the three months ended September 30, 2024, Ziff Davis reported a net loss of $48,577,000, compared to a net loss of $30,971,000 in Q3 2023. The loss per share for Q3 2024 was $1.11, while in Q3 2023 it was $0.67.
Key Performance Metrics
Key performance indicators for the Digital Media and Cybersecurity and Martech segments reflect customer growth and revenue retention. In Q3 2024, the Digital Media segment had 2,239,000 customers with an average revenue per customer of $34.56. The churn rate was 2.59%. In contrast, the Cybersecurity and Martech segment had 1,251,000 customers with an average revenue per customer of $55.99 and a churn rate of 3.13%.
| Segment | Customers (in thousands) | Average Revenue per Customer | Churn Rate |
|---|---|---|---|
| Digital Media | 2,239 | $34.56 | 2.59% |
| Cybersecurity and Martech | 1,251 | $55.99 | 3.13% |
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Resources:
- Ziff Davis, Inc. (ZD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ziff Davis, Inc. (ZD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ziff Davis, Inc. (ZD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.