NEW YORK–(BUSINESS WIRE)–Ziff Davis, Inc. (formerly known as J2 Global, Inc.) (NASDAQ: ZD) today reported financial results for the third quarter ended 30 Settembre 2021. On 7 Ottobre 2021, the Consensus business was spun-off as a separate public company (NASDAQ: CCSI). These third quarter results include Consensus, except where otherwise noted.
“There’s great enthusiasm and excitement at Ziff Davis as we embark on our new chapter,” said Vivek Shah, CEO of Ziff Davis. “Our portfolio of digital media and internet brands are very well-positioned to thrive in some of the highest-value verticals in the marketplace.”
THIRD QUARTER 2021 RESULTS
Q3 2021 quarterly revenues increased 24.5% to a Q3 record of $444.3 million as compared to $357.0 million for Q3 2020. On a pro-forma(6) basis, Q3 2021 quarterly revenues increased 27.7% to $434.7 million as compared to $340.3 million for Q3 2020.
Net cash provided by operating activities increased to $140.2 million as compared to $114.4 million for Q3 2020. Q3 2021 free cash flow(2) increased 17.9% to $110.5 million as compared to $93.7 million for Q3 2020.
GAAP earnings per diluted share(3) decreased to $0.88 in Q3 2021 compared to $1.31 for Q3 2020. Earnings decrease was primarily due a loss on the sale of the B2B Backup business unit of $19.2 million, net of tax.
Adjusted non-GAAP earnings per diluted share(3)(4) for the quarter increased 15.8% to $2.34 as compared to $2.02 for Q3 2020. On a pro-forma(6) basis, Adjusted non-GAAP earnings per diluted share(3)(4) for the quarter increased 16.4% to $2.27 as compared to $1.95 for Q3 2020.
GAAP net income decreased to $42.6 million as compared to $60.9 million for Q3 2020 primarily due to a loss on the sale of the B2B back-up business unit of $19.2 million, net of tax.
Adjusted non-GAAP net income increased by 17.4% to $110.2 million as compared to $93.9 million for Q3 2020. On a pro-forma(6) basis, Adjusted non-GAAP net income increased by 18.7% to $107.1 million as compared to $90.2 million for Q3 2020.
Adjusted EBITDA(5) for the quarter increased 13.6% to $175.1 million compared to $154.1 million for Q3 2020. On a pro-forma(6) basis, Adjusted EBITDA(5) for the quarter increased 16.0% to $170.8 million compared to $147.2 million for Q3 2020.
The company ended the quarter with approximately $657.2 million in cash, cash equivalents, and investments after deploying approximately $23.4 million during the quarter for current and prior year acquisitions.
Key unaudited financial results for Q3 2021 versus Q3 2020 are set forth in the following table (in millions, except per share amounts). Reconciliations of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.
The following table reflects Actual and Pro-Forma Results for the third quarter of 2021 (in millions). Pro-Forma Results below exclude Voice assets in Australia, New Zealand, and the United Kingdom that were sold in 2020 and 2021, respectively, and the Company’s B2B Backup business that was sold during the third quarter of 2021.
|
|
|
|
|
Pro-Forma Results(6) |
||
|
|
Q3 2021 |
Q3 2020 |
% Change |
Q3 2021 |
Q3 2020 |
% Change |
|
Revenues |
|
|
|
|
|
|
|
Cloud Services |
$182.1 |
$170.2 |
7.0% |
$172.5 |
$153.6 |
12.3% |
|
Digital Media |
$262.2 |
$186.7 |
40.4% |
$262.2 |
$186.7 |
40.4% |
|
Total Revenue: (1) |
$444.3 |
$357.0 |
24.5% |
$434.7 |
$340.3 |
27.7% |
|
Operating Income |
$96.1 |
$77.4 |
24.2% |
|
|
|
|
Net Cash Provided by Operating Activities |
$140.2 |
$114.4 |
22.6% |
|
|
|
|
Free Cash Flow (2) |
$110.5 |
$93.7 |
17.9% |
|
|
|
|
GAAP Earnings per Diluted Share (3) |
$0.88 |
$1.31 |
(32.8)% |
|
|
|
|
Adjusted Non-GAAP Earnings per Diluted Share (3) (4) |
$2.34 |
$2.02 |
15.8% |
$2.27 |
$1.95 |
16.4% |
|
GAAP Net Income |
$42.6 |
$60.9 |
(30.0)% |
|
|
|
|
Adjusted Non-GAAP Net Income |
$110.2 |
$93.9 |
17.4% |
$107.1 |
$90.2 |
18.7% |
|
Adjusted EBITDA (5) |
$175.1 |
$154.1 |
13.6% |
$170.8 |
$147.2 |
16.0% |
|
Adjusted EBITDA Margin (5) |
39.4% |
43.2% |
(3.8)% |
39.3% |
43.3% |
(4.0)% |
The following table reflects Actual and Pro-Forma Results for the nine months ended 30 Settembre 2021 (in millions). Pro-Forma Results below exclude Voice assets in Australia, New Zealand, and the United Kingdom that were sold in 2020 and 2021, respectively, and the Company’s B2B Backup business that was sold during the third quarter of 2021.
|
|
YTD |
YTD |
|
YTD Pro-Forma Results(6) |
|||
|
|
Q3 2021 |
Q3 2020 |
% Change |
Q3 2021 |
Q3 2020 |
% Change |
|
|
Revenues |
|
|
|
|
|
|
|
|
Cloud Services |
$528.8 |
$507.1 |
4.3% |
$495.3 |
$452.8 |
9.4% |
|
|
Digital Media |
$742.7 |
$513.3 |
44.7% |
$742.7 |
$513.3 |
44.7% |
|
|
Total Revenue: (1) |
$1,271.5 |
$1,020.4 |
24.6% |
$1,238.0 |
$966.1 |
28.51% |
|
|
Operating Income |
$236.3 |
$205.7 |
14.9% |
|
|
|
|
|
Net Cash Provided by Operating Activities |
$430.3 |
$356.0 |
20.9% |
|
|
|
|
|
Free Cash Flow (2) |
$343.4 |
$304.8 |
12.7% |
|
|
|
|
|
GAAP Earnings per Diluted Share (3) |
$2.86 |
$1.93 |
48.2% |
|
|
|
|
|
Adjusted Non-GAAP Earnings per Diluted Share (3) (4) |
$6.92 |
$5.13 |
34.9% |
$6.68 |
$4.87 |
37.2% |
|
|
GAAP Net Income |
$136.2 |
$92.6 |
47.1% |
|
|
|
|
|
Adjusted Non-GAAP Net Income |
$315.2 |
$242.0 |
30.2% |
$304.4 |
$229.8 |
32.5% |
|
|
Adjusted EBITDA (5) |
$503.4 |
$403.8 |
24.7% |
$489.5 |
$383.0 |
27.8% |
|
|
Adjusted EBITDA Margin (5) |
39.6% |
39.6% |
—% |
39.5% |
39.6% |
(0.1)% |
|
ZIFF DAVIS RESULTS AND BUSINESS OUTLOOK
The following table reflects Ziff Davis revenue, Adjusted EBITDA and Adjusted EBITDA margin, which excludes Consensus and the B2B Backup business and Voice assets (in millions).
|
|
QTD |
YTD |
||||
|
|
Q3 2021 |
Q3 2020 |
% Change |
Q3 2021 |
Q3 2020 |
% Change |
|
Revenue |
$345.6 |
$256.3 |
34.8% |
$974.6 |
$720.5 |
35.3% |
|
Adjusted EBITDA |
$117.2 |
$95.1 |
23.2% |
$329.6 |
$233.5 |
41.2% |
|
Adjusted EBITDA Margin |
33.9% |
37.1% |
(3.2)% |
33.8% |
32.4% |
1.4% |
The Company reaffirms its guidance that was presented at its investor day on 9 Settembre 2021 and provides Q4 2021 guidance below which reflects its pro forma position following the separation of Consensus (in millions, except per share amounts):
|
|
|
Revenue |
Adjusted EBITDA |
Adjusted EPS |
|
FY 2021 Range of Estimates (A) |
|
$1,375 – $1,389 |
$484 – $492 |
|
|
Q4 2021 Range of Estimates (A) |
|
$400 – $414 |
$154 – $162 |
$2.00 – $2.14 |
|
(A) Balances are in millions and represent pro forma 2021 results as if the spin-off of Consensus and the sales of the B2B Backup business and UK Voice assets had occurred on 1 Gennaio 2021. |
The Company has not reconciled the non-GAAP Business Outlook for 2021 Adjusted EBITDA, Q4 2021 Adjusted EBITDA or Q4 2021 Adjusted non-GAAP EPS to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability with respect to forecasted revenues and costs primarily related to acquisitions and taxation, which are potential adjustments to future earnings. We expect the variability of forecasted revenues and costs to have a potentially unpredictable and significant impact on our future GAAP financial results.
Notes:
|
(1) |
|
The revenues associated with each of the businesses may not foot precisely since each is presented independently. |
|
(2) |
|
Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment, plus contingent consideration. Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
|
(3) |
|
The estimated GAAP effective tax rates were approximately 23.0% for Q3 2021 and 28.3% for Q3 2020. The estimated Adjusted non-GAAP effective tax rates were approximately 16.6% for Q3 2021 and 21.8% for Q3 2020. |
|
(4) |
|
Adjusted non-GAAP earnings per diluted share excludes certain non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures, for the three months ended 30 Settembre 2021 and 2020 totaled $1.46 and $0.71 per diluted share, respectively. |
|
(5) |
|
Adjusted EBITDA is defined as earnings before interest; gain on sale of businesses; goodwill impairment of business; loss on investments, net; other income (expense), net; income tax expense; income (loss) from equity method investment, net; depreciation and amortization; and the items used to reconcile EPS to Adjusted non-GAAP EPS, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
|
(6) |
|
Pro-forma figures are provided taking into consideration the sale of certain Voice assets in Australia, New Zealand, and the United Kingdom as well as the sale of the Company’s B2B Backup business as if they had occurred 1 Gennaio 2020. |
About Ziff Davis (formerly J2 Global)
Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, entertainment, shopping, health, cybersecurity, and martech. For more information, visit www.ziffdavis.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah’s quote and the “Business Outlook” portion regarding the Company’s expected fiscal 2021 financial performance. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company’s ability to grow non-fax revenues, profitability and cash flows; the Company’s ability to identify, close and successfully transition acquisitions; subscriber growth and retention; variability of the Company’s revenue based on changing conditions in particular industries and the economy generally; protection of the Company’s proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; and the numerous other factors set forth in Ziff Davis’s (formerly J2 Global, Inc.) filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting Ziff Davis, refer to the 2020 Annual Report on Form 10-K filed by Ziff Davis on 1 Marzo 2021, and the other reports filed by Ziff Davis from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release, including those contained in Vivek Shah’s quote and in the “Business Outlook” portion regarding the Company’s expected fiscal 2021 financial performance are based on limited information available to the Company at this time, which is subject to change. Although management’s expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following Adjusted non-GAAP financial measures: Adjusted non-GAAP net income, Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these Adjusted non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these Adjusted non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these Adjusted non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These Adjusted non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity. We believe these Adjusted non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
For more information on these Adjusted non-GAAP financial measures, please see the appropriate GAAP to Adjusted non-GAAP reconciliation tables included within the attached Exhibit to this release.
|
ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) |
|||||||||
|
|
September 30, |
|
December 31, |
||||||
|
ASSETS |
|
|
|
||||||
|
Cash and cash equivalents |
$ |
546,467 |
|
|
|
$ |
242,652 |
|
|
|
Short-term investments |
— |
|
|
|
663 |
|
|
||
|
Accounts receivable, net of allowances of $14,417 and $16,018, respectively |
268,349 |
|
|
|
325,619 |
|
|
||
|
Prepaid expenses and other current assets |
73,457 |
|
|
|
53,909 |
|
|
||
|
Total current assets |
888,273 |
|
|
|
622,843 |
|
|
||
|
Long-term investments |
110,718 |
|
|
|
97,495 |
|
|
||
|
Property and equipment, net |
183,179 |
|
|
|
156,577 |
|
|
||
|
Operating lease right-of-use assets |
88,331 |
|
|
|
105,845 |
|
|
||
|
Goodwill |
1,861,332 |
|
|
|
1,867,430 |
|
|
||
|
Other purchased intangibles, net |
641,162 |
|
|
|
741,569 |
|
|
||
|
Deferred income taxes, noncurrent |
37,761 |
|
|
|
56,545 |
|
|
||
|
Other assets |
19,901 |
|
|
|
17,027 |
|
|
||
|
TOTAL ASSETS |
$ |
3,830,657 |
|
|
|
$ |
3,665,331 |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||||
|
Accounts payable and accrued expenses |
$ |
228,977 |
|
|
|
$ |
230,651 |
|
|
|
Income taxes payable, current |
1,793 |
|
|
|
31,753 |
|
|
||
|
Deferred revenue, current |
197,901 |
|
|
|
190,644 |
|
|
||
|
Operating lease liabilities, current |
31,636 |
|
|
|
32,211 |
|
|
||
|
Current portion of long-term debt |
568,054 |
|
|
|
396,801 |
|
|
||
|
Other current liabilities |
36 |
|
|
|
497 |
|
|
||
|
Total current liabilities |
1,028,397 |
|
|
|
882,557 |
|
|
||
|
Long-term debt |
1,110,699 |
|
|
|
1,182,220 |
|
|
||
|
Deferred revenue, noncurrent |
15,189 |
|
|
|
14,440 |
|
|
||
|
Operating lease liabilities, noncurrent |
84,519 |
|
|
|
99,177 |
|
|
||
|
Income taxes payable, noncurrent |
11,675 |
|
|
|
11,675 |
|
|
||
|
Liability for uncertain tax positions |
54,178 |
|
|
|
57,081 |
|
|
||
|
Deferred income taxes, noncurrent |
112,482 |
|
|
|
162,700 |
|
|
||
|
Other long-term liabilities |
44,259 |
|
|
|
44,463 |
|
|
||
|
TOTAL LIABILITIES |
2,461,398 |
|
|
|
2,454,313 |
|
|
||
|
Commitments and contingencies |
— |
|
|
|
— |
|
|
||
|
Preferred stock |
— |
|
|
|
— |
|
|
||
|
Common stock |
478 |
|
|
|
443 |
|
|
||
|
Additional paid-in capital |
508,493 |
|
|
|
456,274 |
|
|
||
|
Retained earnings |
931,477 |
|
|
|
809,107 |
|
|
||
|
Accumulated other comprehensive loss |
(71,189 |
) |
|
|
(54,806 |
) |
|
||
|
TOTAL STOCKHOLDERS’ EQUITY |
1,369,259 |
|
|
|
1,211,018 |
|
|
||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
3,830,657 |
|
|
|
$ |
3,665,331 |
|
|
|
ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) |
|||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||
|
Total revenues |
$ |
444,252 |
|
|
|
$ |
356,976 |
|
|
|
$ |
1,271,480 |
|
|
|
$ |
1,020,353 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Cost of revenues (1) |
64,302 |
|
|
|
55,822 |
|
|
|
185,462 |
|
|
|
171,755 |
|
|
||||
|
Gross profit |
379,950 |
|
|
|
301,154 |
|
|
|
1,086,018 |
|
|
|
848,598 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||||||
|
Sales and marketing (1) |
139,693 |
|
|
|
95,074 |
|
|
|
394,981 |
|
|
|
287,317 |
|
|
||||
|
Research, development and engineering (1) |
21,639 |
|
|
|
14,261 |
|
|
|
62,634 |
|
|
|
43,273 |
|
|
||||
|
General and administrative (1) |
122,477 |
|
|
|
114,381 |
|
|
|
359,498 |
|
|
|
312,283 |
|
|
||||
|
Goodwill impairment on business |
— |
|
|
|
— |
|
|
|
32,629 |
|
|
|
— |
|
|
||||
|
Total operating expenses |
283,809 |
|
|
|
223,716 |
|
|
|
849,742 |
|
|
|
642,873 |
|
|
||||
|
Income from operations |
96,141 |
|
|
|
77,438 |
|
|
|
236,276 |
|
|
|
205,725 |
|
|
||||
|
Interest expense, net |
(19,862 |
) |
|
|
(22,712 |
) |
|
|
(62,832 |
) |
|
|
(65,879 |
) |
|
||||
|
(Loss) gain on sale of businesses |
(24,600 |
) |
|
|
17,122 |
|
|
|
(21,798 |
) |
|
|
17,122 |
|
|
||||
|
Loss on investments, net |
— |
|
|
|
(156 |
) |
|
|
(16,677 |
) |
|
|
(20,991 |
) |
|
||||
|
Other income, net |
1,660 |
|
|
|
14,230 |
|
|
|
1,367 |
|
|
|
16,413 |
|
|
||||
|
Income before income taxes and (loss) income from equity method investment, net |
53,339 |
|
|
|
85,922 |
|
|
|
136,336 |
|
|
|
152,390 |
|
|
||||
|
Income tax expense |
8,847 |
|
|
|
24,330 |
|
|
|
16,723 |
|
|
|
49,011 |
|
|
||||
|
(Loss) income from equity method investment, net |
(1,923 |
) |
|
|
(709 |
) |
|
|
16,596 |
|
|
|
(10,799 |
) |
|
||||
|
Net income |
$ |
42,569 |
|
|
|
$ |
60,883 |
|
|
|
$ |
136,209 |
|
|
|
$ |
92,580 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Basic net income per common share: |
|
|
|
|
|
|
|
||||||||||||
|
Net income attributable to common shareholders |
$ |
0.91 |
|
|
|
$ |
1.31 |
|
|
|
$ |
3.01 |
|
|
|
$ |
1.96 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Diluted net income per common share: |
|
|
|
|
|
|
|
||||||||||||
|
Net income attributable to common shareholders |
$ |
0.88 |
|
|
|
$ |
1.31 |
|
|
|
$ |
2.86 |
|
|
|
$ |
1.93 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Basic weighted average shares outstanding |
46,738,073 |
|
|
|
46,279,515 |
|
|
|
45,258,819 |
|
|
|
46,914,750 |
|
|
||||
|
Diluted weighted average shares outstanding |
48,582,585 |
|
|
|
46,309,072 |
|
|
|
47,565,062 |
|
|
|
47,620,308 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
||||||||||||
|
Cost of revenues |
$ |
108 |
|
|
|
$ |
136 |
|
|
|
$ |
357 |
|
|
|
$ |
413 |
|
|
|
Sales and marketing |
427 |
|
|
|
321 |
|
|
|
1,160 |
|
|
|
1,135 |
|
|
||||
|
Research, development and engineering |
613 |
|
|
|
425 |
|
|
|
1,690 |
|
|
|
1,340 |
|
|
||||
|
General and administrative |
5,607 |
|
|
|
4,918 |
|
|
|
15,912 |
|
|
|
15,755 |
|
|
||||
|
Total |
$ |
6,755 |
|
|
|
$ |
5,800 |
|
|
|
$ |
19,119 |
|
|
|
$ |
18,643 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) |
|||||||||
|
|
Nine Months Ended |
||||||||
|
Cash flows from operating activities: |
2021 |
|
|
2020 |
|
||||
|
Net income |
$ |
136,209 |
|
|
|
$ |
92,580 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||||
|
Depreciation and amortization |
196,443 |
|
|
|
163,680 |
|
|
||
|
Amortization of financing costs and discounts |
21,295 |
|
|
|
21,393 |
|
|
||
|
Non-cash operating lease costs |
8,366 |
|
|
|
15,686 |
|
|
||
|
Share-based compensation |
19,119 |
|
|
|
18,643 |
|
|
||
|
Provision for doubtful accounts |
7,934 |
|
|
|
9,508 |
|
|
||
|
Deferred income taxes, net |
2,537 |
|
|
|
7,815 |
|
|
||
|
(Loss) gain on sale of businesses |
21,798 |
|
|
|
(17,122 |
) |
|
||
|
Lease asset impairments |
9,410 |
|
|
|
9,786 |
|
|
||
|
Goodwill impairment on business |
32,629 |
|
|
|
— |
|
|
||
|
Changes in fair value of contingent consideration |
(567 |
) |
|
|
(243 |
) |
|
||
|
Foreign currency remeasurement gain |
181 |
|
|
|
(15,919 |
) |
|
||
|
(Income) loss from equity method investments |
(16,596 |
) |
|
|
10,799 |
|
|
||
|
Loss on equity and debt investments |
16,677 |
|
|
|
20,826 |
|
|
||
|
Decrease (increase) in: |
|
|
|
||||||
|
Accounts receivable |
49,888 |
|
|
|
57,560 |
|
|
||
|
Prepaid expenses and other current assets |
(10,610 |
) |
|
|
(3,279 |
) |
|
||
|
Other assets |
(2,378 |
) |
|
|
543 |
|
|
||
|
Increase (decrease) in: |
|
|
|
||||||
|
Accounts payable and accrued expenses |
(1,409 |
) |
|
|
(26,430 |
) |
|
||
|
Income taxes payable |
(37,863 |
) |
|
|
(496 |
) |
|
||
|
Deferred revenue |
4,774 |
|
|
|
(10,494 |
) |
|
||
|
Operating lease liabilities |
(19,346 |
) |
|
|
(12,857 |
) |
|
||
|
Liability for uncertain tax positions |
(2,903 |
) |
|
|
7,746 |
|
|
||
|
Other long-term liabilities |
(5,336 |
) |
|
|
6,284 |
|
|
||
|
Net cash provided by operating activities |
430,252 |
|
|
|
356,009 |
|
|
||
|
Cash flows from investing activities: |
|
|
|
||||||
|
Proceeds on sale of available-for-sale investments |
663 |
|
|
|
— |
|
|
||
|
Distribution from equity method investment |
15,327 |
|
|
|
— |
|
|
||
|
Purchases of equity method investment |
(22,249 |
) |
|
|
(29,979 |
) |
|
||
|
Purchases of equity investments |
(999 |
) |
|
|
(843 |
) |
|
||
|
Purchases of property and equipment |
(87,495 |
) |
|
|
(71,266 |
) |
|
||
|
Acquisition of businesses, net of cash received |
(112,444 |
) |
|
|
(27,156 |
) |
|
||
|
Proceeds from sale of businesses, net of cash divested |
48,876 |
|
|
|
24,353 |
|
|
||
|
Proceeds from sale of assets |
— |
|
|
|
507 |
|
|
||
|
Purchases of intangible assets |
(1,255 |
) |
|
|
(2,902 |
) |
|
||
|
Net cash used in investing activities |
(159,576 |
) |
|
|
(107,286 |
) |
|
||
|
Cash flows from financing activities: |
|
|
|
||||||
|
Payment of debt |
(402,414 |
) |
|
|
— |
|
|
||
|
Payment of note payable |
— |
|
|
|
(400 |
) |
|
||
|
Proceeds from bridge loan |
485,000 |
|
|
|
— |
|
|
||
|
Repurchase of common stock |
(29,855 |
) |
|
|
(238,905 |
) |
|
||
|
Issuance of common stock under employee stock purchase plan |
4,232 |
|
|
|
3,303 |
|
|
||
|
Exercise of stock options |
2,880 |
|
|
|
952 |
|
|
||
|
Deferred payments for acquisitions |
(13,387 |
) |
|
|
(20,427 |
) |
|
||
|
Other |
(6,619 |
) |
|
|
(1,377 |
) |
|
||
|
Net cash provided by (used in) financing activities |
39,837 |
|
|
|
(256,854 |
) |
|
||
|
Effect of exchange rate changes on cash and cash equivalents |
(6,698 |
) |
|
|
446 |
|
|
||
|
Net change in cash and cash equivalents |
303,815 |
|
|
|
(7,685 |
) |
|
||
|
Cash and cash equivalents at beginning of period |
242,652 |
|
|
|
575,615 |
|
|
||
|
Cash and cash equivalents at end of period |
$ |
546,467 |
|
|
|
$ |
567,930 |
|
|
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES THREE MONTHS ENDED 30 Settembre 2021 AND 2020 (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|||||||||||||
|
Adjusted non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with outstanding debt; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of gain/loss on sale of assets; (8) elimination of intra-entity transfers; (9) elimination of lease asset impairments and other charges; (10) elimination of disposal related costs; (11) elimination of goodwill impairment on business and (12) elimination of dilutive effect of the convertible debt. |
|||||||||||||
|
|
Three Months Ended September 30, |
||||||||||||
|
|
2021 |
Per Diluted |
2020 |
Per Diluted |
|||||||||
|
Net income |
$ |
42,569 |
|
$ |
0.88 |
|
$ |
60,883 |
$ |
1.31 |
|
||
|
Plus: |
|
|
|
|
|||||||||
|
Share based compensation (1) |
4,043 |
|
0.09 |
|
4,552 |
0.10 |
|
||||||
|
Acquisition related integration costs (2) |
2,908 |
|
0.06 |
|
1,177 |
0.03 |
|
||||||
|
Interest costs (3) |
2,774 |
|
0.06 |
|
4,784 |
0.10 |
|
||||||
|
Amortization (4) |
35,327 |
|
0.75 |
|
32,314 |
0.70 |
|
||||||
|
Investments (5) |
1,947 |
|
0.04 |
|
687 |
0.01 |
|
||||||
|
Tax expense from prior years (6) |
— |
|
— |
|
2,551 |
0.06 |
|
||||||
|
Sale of assets (7) |
19,249 |
|
0.41 |
|
(9,936) |
(0.21 |
) |
||||||
|
Intra-entity transfers (8) |
— |
|
— |
|
(13,447) |
(0.29 |
) |
||||||
|
Lease asset impairments and other charges (9) |
1,271 |
|
0.03 |
|
7,566 |
0.16 |
|
||||||
|
Leasehold improvement impairments (10) |
— |
|
— |
|
2,777 |
0.06 |
|
||||||
|
Disposal related costs (10) |
133 |
|
— |
|
— |
— |
|
||||||
|
Convertible debt dilution (12) |
— |
|
0.03 |
|
— |
— |
|
||||||
|
Adjusted non-GAAP net income |
$ |
110,221 |
|
$ |
2.34 |
|
$ |
93,908 |
$ |
2.02 |
|
||
|
* The reconciliation of net income per share from GAAP to Adjusted non-GAAP may not foot since each is calculated independently. |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES NINE MONTHS ENDED 30 Settembre 2021 AND 2020 (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|||||||||||||
|
Adjusted non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with outstanding debt; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of gain/loss on sale of assets; (8) elimination of intra-entity transfers; (9) elimination of lease asset impairments and other charges; (10) elimination of disposal related costs; (11) elimination of goodwill impairment on business and (12) elimination of dilutive effect of the convertible debt. |
|||||||||||||
|
|
Nine Months Ended September 30, |
||||||||||||
|
|
2021 |
Per Diluted |
|
2020 |
Per Diluted |
||||||||
|
Net income |
$ |
136,209 |
|
$ |
2.86 |
|
|
$ |
92,580 |
|
$ |
1.93 |
|
|
Plus: |
|
|
|
|
|
||||||||
|
Share based compensation (1) |
10,668 |
|
0.23 |
|
|
14,350 |
|
0.31 |
|
||||
|
Acquisition related integration costs (2) |
5,904 |
|
0.13 |
|
|
2,771 |
|
0.06 |
|
||||
|
Interest costs (3) |
12,460 |
|
0.27 |
|
|
13,929 |
|
0.30 |
|
||||
|
Amortization (4) |
105,827 |
|
2.32 |
|
|
89,398 |
|
1.91 |
|
||||
|
Investments (5) |
(5,008 |
) |
(0.11 |
) |
|
35,495 |
|
0.75 |
|
||||
|
Tax expense from prior years (6) |
— |
|
— |
|
|
4,916 |
|
0.11 |
|
||||
|
Sale of assets (7) |
16,551 |
|
0.37 |
|
|
(10,271 |
) |
(0.22 |
) |
||||
|
Intra-entity transfers (8) |
— |
|
— |
|
(13,316 |
) |
(0.29 |
) |
|||||
|
Lease asset impairments and other charges (9) |
7,816 |
|
0.17 |
|
|
9,391 |
|
0.20 |
|
||||
|
Leasehold improvement impairments (10) |
— |
|
— |
|
|
2,777 |
|
0.06 |
|
||||
|
Disposal related costs (10) |
178 |
|
— |
|
|
— |
|
— |
|
||||
|
Goodwill impairment on business (11) |
24,635 |
|
0.54 |
|
|
— |
|
— |
|
||||
|
Convertible debt dilution (12) |
— |
|
0.12 |
|
|
— |
|
0.03 |
|
||||
|
Adjusted non-GAAP net income |
$ |
315,240 |
|
$ |
6.92 |
|
|
$ |
242,020 |
|
$ |
5.13 |
|
Contacts
Rebecca Wright
Ziff Davis, Inc.
800-577-1790
investor@ziffdavis.com
