Ziff Davis (ZD) Q4 2023 earnings summary

Executive summary

• Q4 revenue declined 1.7% YoY to $389.9M; Adjusted EBITDA fell 0.4% to $167.6M, while Adjusted Diluted EPS rose 3.1% to $2.33.

• FY 2023 revenue declined 1.9% to $1.364B; Adjusted EBITDA fell 4.9% to $482.3M and Adjusted Diluted EPS fell 6.9% to $6.19.

Financial highlights

• Q4 operating income fell 13.6% to $80.7M; net income from continuing operations decreased 8.3% to $63.4M.

• Q4 adjusted net income from continuing operations increased 1.0% to $107.0M; GAAP diluted EPS declined 5.8% to $1.29.

• FY operating income declined 33.3% to $132.6M; net income from continuing operations fell 36.6% to $41.5M.

• FY adjusted net income fell 8.1% to $287.4M.

Outlook and guidance

• FY 2024 revenue guidance is $1.411B–$1.471B, midpoint $1.441B and 5.6% midpoint growth.

• Adjusted EBITDA guidance is $500M–$521M, midpoint $511M and 5.8% midpoint growth; Adjusted Diluted EPS guidance is $6.43–$6.77, midpoint $6.60 and 6.6% growth.

• Revenue growth outlook is 5%–7% overall, 3%–5% for advertising, and low-double-digit for subscription and licensing.

• 2024 adjusted EPS excludes acquired-intangible amortization and currently unanticipated items, net of tax; expected adjusted effective tax rate is 23.25%–25.25%. Guidance is subject to risks and assumptions.