Ziff Davis (ZD) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Company evolution and portfolio overview

• Celebrating 100th anniversary, current chapter began in 2010 with a transformation and multiple acquisitions, leading to a $2 billion spin-off in 2021.

• Over 70 transactions completed in the past decade, with recent focus on share buybacks and asset monetization.

• Four main segments: Tech & Shopping, Health & Wellness, Gaming & Entertainment, and Cybersecurity & MarTech, each shaped by targeted acquisitions.

• Recent sale of the Connectivity business to Accenture for $1.2 billion, with remaining portfolio containing over 20 assets.

Strategic review and capital allocation

• Strategic review initiated due to share price pressure and market undervaluation, with increased transparency from segment reporting.

• Monetization, including sales, spin-offs, and investments, is now a core part of the strategy alongside traditional buy-and-hold.

• Capital allocation focuses on strengthening the balance sheet, investing in core businesses, selective M&A, and share buybacks.

• Flexibility in capital deployment is emphasized, with decisions based on risk-reward and market conditions.

Business performance and industry outlook

• Tech & Shopping segment faces challenges from Google algorithm changes, but alternative engagement channels are being developed.

• Gaming & Entertainment and Health & Wellness segments show strong performance, with subscription models providing stability.

• Cybersecurity & MarTech segment has improved, with software under some pressure but strong subscription base.

• Portfolio diversity and resilience highlighted, with nearly 40% of revenue non-advertising in Q1.