Ziff Davis (ZD) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Business overview and recent performance

• Operates across seven digital media and software verticals, generating $1.4B revenue and $500M EBITDA.

• Revenue split is 55% advertising, 45% subscriptions, with recent improvements in both segments.

• Organic growth in subscriptions reached 7% year-on-year; advertising headwinds are easing.

• Acquisition activity resumed in 2024 after a pause, including CNET, Gamer Network, FullContact, and TDS.

• Cost-side synergies from recent acquisitions are already realized, with revenue synergies expected as ad markets recover.

Strategic initiatives and M&A

• Tech media assets consolidated into a single group for operational efficiency and market impact.

• Targeting five times purchase price over EBITDA within 12–18 months post-synergy for acquisitions.

• M&A environment has normalized, with more productive deal conversations and opportunities.

• Capital allocation prioritizes M&A, but share buybacks are executed when shares are undervalued.

• Over $200M spent on buybacks, $140M on debt reduction, and hundreds of millions on M&A in 2024.

Operational focus and financial discipline

• Emphasizes profitable growth, with a focus on free cash flow and margin targets for all brands.

• Implements a “shrink-to-grow” strategy for underperforming B2B tech assets, aiming for profitability over scale.

• Portfolio managed with the same rigor as acquisitions, prioritizing free cash flow generation.

• Free cash flow conversion targeted at mid-50% of EBITDA, currently trending in the high 40s to low 50s.

• Balance sheet remains strong, with gross leverage under 2x and a $350M undrawn revolver.