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Sep 30, 2023
Ziff Davis Q3 2023 Earnings Report
Ziff Davis reported a decrease in quarterly revenues and a significant decrease in income from operations and net income due to a goodwill impairment, but saw a return to positive organic growth in the Digital Media segment.
Key Takeaways
Ziff Davis reported a slight decrease in revenue for Q3 2023, with a more significant decrease in income from operations and net income due to a goodwill impairment. However, the Digital Media segment returned to positive organic growth, signaling a potential turnaround.
Q3 2023 revenues decreased by 0.3% to $341.0 million compared to $341.9 million for Q3 2022.
Loss from operations decreased 145.9% to $(13.3) million compared to $29.0 million for Q3 2022, primarily due to a $56.9 million goodwill impairment.
Net loss decreased to $(31.0) million compared to $18.2 million for Q3 2022, also impacted by the goodwill impairment.
Adjusted EBITDA decreased 5.3% to $113.7 million compared to $120.1 million for Q3 2022.
Forward Guidance
The Company reaffirms its guidance for fiscal year 2023
Positive Outlook
- Revenue between $1,350.0 million and $1,408.0 million
- Adjusted EBITDA between $479.0 million and $514.0 million
- Adjusted diluted EPS between $6.02 and $6.54
- Adjusted diluted EPS excludes share-based compensation ranging between $32 million and $34 million
- Adjusted diluted EPS excludes amortization of acquired intangibles
Challenges Ahead
- A reconciliation of forward-looking Adjusted EBITDA and Adjusted diluted EPS to the corresponding GAAP guidance financial measures is not available without unreasonable effort
- Variability and difficulty in making accurate forecasts and projections of non-operating matters that may arise in the future make reconciliation difficult
- Share-based compensation is excluded from Adjusted diluted EPS
Historical Earnings Impact
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Avg. Return Before/After Earnings
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