ZD - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen, and welcome to Ziff Davis First Quarter 2022 Earnings Call. My name is Paul, and I will be the operator assisting you today. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] On this call will be Vivek Shah, CEO of Ziff Davis; and Bret Richter, Chief Financial Officer of Ziff Davis. I will now turn the call over to Bret Richter, Chief Financial Officer of Ziff Davis. you. Thank

begin. may You

Bret Richter

morning, Call welcome for Good Davis the Investor Conference QX everyone, you. to and Ziff Thank XXXX.

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In time After operator for Q&A. you'll from The able formal regarding webcast asking instruct questions. conducting the this completing at you the a addition, will site. procedures that to presentation, be access the we'll be

to e-mail you questions addition, investor@ziffdavis.com. In can

language. our Before safe the we allow harbor read begin me to prepared remarks,

call statements differ include the As results will to results. you materially webcast risks this would actual that involve and uncertainties anticipated may know, cause the Such from statements. forward-looking and

well and filings, we include, and as in discussions those filings Some filings, the risks that in our SEC well to, recent forward-looking we have uncertainties factors statements this those as but additional disclosed part refer risk our harbor statements. limited you are including filings, to XX-K documents the various of proxy as have of webcast. language risk as XX-Q included as factors slide not that safe We show for X-K regarding

call the over turn Vivek to his me let remarks. for Now

Vivek Shah

high quarter forma and lapping the rising was chain has become very guidance strong our call, pro going set in Without EBITDA, everyone. negative interest our out us morning, rates, up to by as acquisition. very quarter relative conflict XXXX, we're with the Ziff first a hard RetailMeNot challenging GDP over labor year. first adjusted problems, delivered comp good for Notwithstanding and geopolitical environment results, with our in supply and shortages. the to I these Davis macroeconomic Bret, given you, and of Thank and continued the and for revenues uncertain, inflation And challenges, our both growth, a of pointed reaffirm position with quarter a QX X% be to represent this pleased last Overall, year-over-year. of strength question,

declined in X% revenues first advertising Our quarter. the

being of in campaigns We disruptions calls, been chain clients. production As described our concerned the advertising be on our challenges. we about continuing continue last saw X impact to fulfillment marketers some of curtailed our as and budgets have to we've delayed supply and

important our marketing We also e-commerce of which revenues. saw fewer performance clicks is sites, an part to from properties our

itself We lowered higher managed the lapping but also the was quarter, added RetailMeNot revenues had in ago for year being challenge a EBITDA. which of

As call, were surprised. these we entertainment experienced said the same of we At last expecting significant at and all we and in the headwinds, many growth our health verticals. and gaming on therefore, not time,

to Ad its largest weather diversification as to the proves In important had ad look revenue IGN macroeconomic its be history. we in fact, present challenges. quarter category

well those Our and Ookla quarter. including and connectivity our of and several Ekahau, including on ahead and of in growth plan. benefit subscription of are has grew or acquisitions, We SEO. businesses subscription businesses, gone several XX% both first Moz double-digit over of in businesses, integration the The revenues the our saw RootMetrics very

was continued headwinds. business cybersecurity a in some with customer challenges decliner, Our and low acquisition direct FX single-digit

the trajectory our the of some recovery. pleased seeing customer Group. email Group, we're And at providers, experience who Officer did first quarter. a reduced experience activity serve. the SMBs are the we selling the overall, also VIPRE new Chief martech, brings within We're Revenue through with in which in extensive base service to channel and the have In We managed key we Moz

Our flat its macroeconomic good QX to revenue considering which in which was challenges organic X%. But early we is for in excluding the were quarter. RetailMeNot, in declined in outcome the closer reduction revenues, XXXX quarter being and a planned when organic revenues FX headwinds, the

In was our and which pleased accretive, year also difficult a often means the when connectivity, acquired organic in tech to at acquisition. revenues excluding XX%, which cybersecurity fact, margins which were margin organic and martech first is growth meaning and businesses, of growth. health, accomplish positive I'm shopping our X% gaming X% held QX, very in entertainment, our posted with an

uncertain environment, very about to given continue judicious invest also we'll growth We expenditures, in organic operating be will but continue the to opportunities.

our number growth to we saw strong businesses. sure those want of continue support to to in In fact, and be some rates organic a verticals QX,

We the or are of businesses. to the best new of best, in in. portfolio acquire if capital our liquidity and billion to we positions have ability the ever been $X investments, within With for growth, we've one whether existing not cash nearly deploy

targets as very where #X acquired quarter, primary parenting tuck-in, solidifies other QX, handsomely X pregnancy combined unduplicated will a million have larger competitive What M&A, rewarded. in active environment Diary the position but including have and Speaking monthly and BabyCenter, acquisition our ranked the set. we favorable with category Emma's brands, The the Expect U.K.-based We in This discipline into we and brands: position X.X Diary. leadership U.K., we among a the our a patience Emma's continue a to buyer, and X in of of be and is portfolio are believe users, a company-wide. entering in acquisition discussions reach believe our small transaction, relatively the of like to

over verticals: intent-driven Today, were look existing assets we're Nevertheless, verticals essentially terrific Ziff cybersecurity EBITDA of our other health, ones recent value. and martech, acquisition Xx. over total last our enhance which assets well decade, within in that as adjusted estimated high-value a we're a is memory. tick the the We believe as was shareholder and connectivity, for buyers required market entertainment, our just and in continue most one markets portfolio robust We in. a Davis returns acquirers, only more share and tech, that of shopping, that arguably benign the of spend to will for the sellers gaming nature is

me We that turn outlook we headwinds the in are our let similar year. QX rates into QX as over to the anticipate the be will somewhat QX. growth of same Now of for rest QX many to experienced carrying

half of year believe show improvements. However, the we the second will

third, comps including approval category, in a year-over-year First, of RetailMeNot; have streamlined we pharma we anticipate have where major new favorable product to have increased promise; post-COVID a second, including ad process. should are getting the drug launches clients, launches pipeline, believe we more new signals FDA of favorable from expect we we spend lot drug a important that for and

into if to have same during course, we'd sight or leave line stabilize worsen, of At add year, time, macroeconomic our the that of views Of would half. could then to adjusted have don't second incremental and close revenue we even us balance of well the conditions positioned acquisitions reassess the EBITDA. which the

creators. monetize support and collectives investment. also which across a content We to and are to into Group brands. Group Ziff Davis' of fund Black face to excited and from the Ziff entering to a content one Davis the and platforms, media in for largest The Collective, will an them create, the Black's a ownership Black, a exposure of media home with of new of transform advertising content providing Ziff creators collaborate strategic Black Group advertising Black will provide black-owned media is partnership of brand effort is voice ad diverse new Group Davis' and for Ziff to Black's partnership Davis black-owned amplify on investments providing with editorial portfolio and attempting by company inventory partners. we're Group Group deployment

investment black-owned also Black, will million made we generate also strategic great media. support which financial in while We think a to $XX providing and returns Group

proactively collectively facing. first goal. X service for retirement to was Richard decades. and now to raised initiative, and recently the long-term known conclude humanitarian targets most highlights incredible private. took incredibly an on Ziff environmental, step the me including state Humble investor the announced proud efforts. were greenhouse carbon the our continued by from and legislation to and committed gold past I'm $XX his to inventory, is reduction roadshow we've thanking In valuable Richard In respond efforts. we issues as Competes to Bundle some continues societal when as company from recent The subsequently Board Ukraine-based you statement ESG Competes business time for target science-based Ukraine-based Let our setting annual our is customers respond Ziff Ressler, business Chair. first company to released questions our are shareholders. coalitions. and report Davis you our highlighted our have extraordinary the setting Ukraine, the was to targets, Davis employees, ESG Florida who and about shareholders. He part. a I Ziff to anti-LGBTQ the work to standard nondeal evacuate the of consultants been intuition with from the several our pressing was to March, and our social months, findings days community The in we update joined and million we're over officially our advocate Thank want and early late in upon we Poland SBTi. HRC's we hold and the period of report Russia's emission crises our mentor was and has of an gas ESG by steadfast of received most for fielded on presented Needless early March, helped second who and those of stakeholders, report say, CEO enormous where a has pleased you ESG do to charities. to invasion the SBTi Davis' emissions early neutral an me inaugural of a well as with social report. also We leadership In reduction recently, wisdom, provide of for to challenges well us. the our and His a our Texas his done

served Fortunately, Currently, Director and executive was firm, is has fantastic commitment Capital Director wonderful we and advertising and President judgment Managing as our Lead she and possesses North company U.S. With a been at Bret. of since have Ventures. the her Sarah She CEO and who Compensation Isobar that, America, me back Chair Sarah is Committee unmatched. a Aegis of hand Carat the XXXX. Glasswing to having a our the call Fay, in the stakeholders its pioneering industry, to successor of Media in a Venture our U.S. let Director,

Bret Richter

you, Vivek. Thank

results. financial our discuss Let's

reflects financial and our release earnings XXXX. both GAAP QX non-GAAP Our for results

Explanations dispositions. asset also pro and these release reflects in for release. the for earnings impact various the adjustments provided Our are reconciliations forma of of adjustments

these you our the XXXX our of presentation earnings are backup in February the related impact recall reflected completed QX we these their in we XXXX, from XXXX. were our sale sold to QX results September previous assets X, spin-off BXB On of financials respective divestitures October our of may XXXX, business do not date divestitures of the results. The in As Consensus. our sale. calls, U.K. completed through But Voice XXXX and

Our XXXX, reflects activity in the Consensus X, income discontinued QX XXXX GAAP operations. through to statement related financial October

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on $XXX.X as Now for of results period, growth for EBITDA the from of was financial from quarterly the Pro X. first let's revenue compared continuing million Slide with summary period, for reported million quarter year $XXX.X review growth million forma operations as operations forma million XXXX $XX.X X.X%. pro $XXX.X for compared of prior of We prior with the year X.X%. the adjusted continuing reflecting QX reflecting our

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and declined earlier as on revenue advertising As prior you by QX as see X, pro compared Vivek, discussed the forma by with period. X% Slide can

XX last has revenue during advertising However, grown the XX% months.

period of Our annual trailing in to Net we advertising XX-month XXX% advertisers net quarterly, XXX.X%, trailing group our above and these X XX-month in revenue generated period. by prior update by advertising revenue was advertising retention metric retention defined advertisers compares that comparable revenue revenue advertising goal. the a statistic generated

business increase advertiser Ziff in per quarterly first of As advertisers XXXX. X revenue in wellness as acquisition factors: the average advertisers QX, year-over-year, year-over-year a in our advertiser. $XX,XXX. reflects impact businesses in year-over-year This quarterly our advertisers, XX% grew X,XXX per QX These characterized and the we number primarily generally are acquired including excess with quarter, slide, In due per certain the well the the as advertisers decline reported than in Davis of other had number defined Marketing in a businesses. lower added base, in M&A, of Lifecycle of of revenue by primarily health revenue more to our to but by than advertiser our of

increased advertising entertainment. large connectivity, spend of but revenues the decline subscription X revenue subscription lower and quarters. table noted last the by metrics including subscriber in bottom advertisers, revenues in we Sequentially, QX which delays actions higher over depicts grew our VPN average $XX.XX, experienced forma offerings, within a in year. X resulted by also to driven X health performance. and our The Subscription both months. XX% solutions. XX business, our subscription primarily roughly within revenue in includes wellness our on our Slide Slide subscription increase number a sequential within XXXX XX% last also an growth monthly shopping $X As subscribers, grown by ARPs last earlier, subscription our These certain in and technology, and XX% slight nearly larger of during pro partners. pullbacks the revenue have of for versus had from per

X.XX%. XXXX that certain churn we Our note overall of of these quarter metrics QX to from the redefined basis rate increased XXXX. first XX points during Please elements

by revenues XXX% that million. owned businesses Additionally, total and QX provides other a $X revenue XX to revenues full businesses grow XXXX while Revenues growth. more pro owned growth delineated less revenue, months Slide for organic than months. we've year-over-year the X forma in acquired least from company revenue included are quarterly for more XX its by to at than organic than saw relate rates

achieved X% organic XX growth For months, a the last we revenue rate.

this acquisition of company including to as rates. factors of revenue revenue was decline, As discussed extent, for quarter earlier, Vivek first number of the that lesser a X% a exchange contributed organic whole, for negative XXXX. the a to growth and organic highlighted foreign the RetailMeNot,

to to balance sheet. refer Turning Slide X. our Please

balance Our sheet extremely be continues strong. to

more significant cash have quarter cash We cash liquidity of with end, leverage gross of equivalents leverage investments, and $XXX million basis. a of on net both long-term short- and $XXX significant capacity million than and as and

value include investments. gross with if adjusted and leverage net X.Xx EBITDA, of We XXXX Xx continue our gross end, to our within keeping or X.Xx be QX and our we committed the at currently are leverage At only to Xx quarter adjusted this metric below months you XX was leverage well trailing of EBITDA. financial

to operating the our challenging and balance macroeconomic of are continue health a we environment, will sheet. prioritize in We

we value, allocation that an to alternatives have to pursue to enhance M&A alternatives. effort in capital particularly believe the we continue However, shareholder flexibility various

As call, million announced our common part shares. and the XXXX our year $XX.X on of of $XX.X and during first notes, quarter million repurchased quarter of X.XXX% full of fourth senior XXXX, the our we early

million approach current allocation. are of $XX.X cash all capital with prior in also acquisitions. and We consistent balanced period believe approximately During first quarter, thoughtful activities we to the deployed related our to these

If Slide to you XX. refer

we XXXX Vivek presented guidance in reaffirming range the noted, As are February. that we

share X%, EBITDA as per respectively, may recall, XX%, from non-GAAP February. adjusted XXXX of compared continuing the that diluted operations of results adjusted presented and growth forma pro and approximately our imply we guidance midpoints XX% with rates income the As you revenue, in

of the associated with in condensed XXXX as operations note through XXXX, also the our that Please as non-GAAP bank Following QX for ultimately discontinued our this were Consensus. the statement flow supplemental accounts consolidated of cash Slide our operations contributions cash disposed supplemental figure reflects Consensus. measures GAAP as are a cloud operations million. include cash reconciliation pooled as BXB presented nearest reconciliation from end XXXX flows, as note cash various and equivalent. business our the continuing in our businesses, to QX of assigned $XXX.X cash statements certain QX disposal section free backup including This was assets reflected of to recently certain as outlook retained that materials, U.K. dates XX discontinued both slides includes from equivalents well during and of cash of their reflects from certain their information to and that for XX-Q related QX Voice the GAAP XXXX, that Please on

$XX free Our XXXX was flow million. QX cash

While seasonally Consensus divested operations of our does working XXXX first assets, quarter reflect high does not capital of of the or impacts the flow it recently activity. cash the reflect impact

As the any do working flow an annual not measure capital I This our on to most the and capital short period. to but timing manage believe call, is fluctuations, within we noted quarterly the largely XX-month subject why is resolve that during financial of one is elements cash last term. we working

sources payments timing number performance, a our of a can fluctuate with changes growth capital, challenging the Overall, working XXXX in again, key in flows expect less our environment. working interest on noted capital As the prior and to impact are basis, financials. taxes, an excluded And from adjusted EBITDA flow non-GAAP expenditures, I the annual and pleased in we interest are cash free call, our approximate given of meaningfully. uses capital cash and and QX tax metrics we financial on that quarterly any achieved of having

queue the will you to ask for XXXX. to We questions. re-join now that, on instruct operator the to are us, I looking of forward With how balance to

Operator

One be session. Instructions] the Carpenter we conducting a JPMorgan. while moment now first [Operator coming question-and-answer will from Cory question is begin. And from We

Cory Carpenter

and launches new for for of second maybe one the Vivek, in half one the you Vivek, mentioned year. you Bret. product

Just growth hoping Bret, in update or teens. thinking saw based just the you your plans for in quarter, some there ad side. mix low subscription high then of to to on the you could last this Any on the expand on quarter? change the the a you And single and growth in bit what maybe product on digits first year guided your

Vivek Shah

which deal we business called opportunities product which a have With in. actually connectivity is the some in respect business, see very our incremental a out is Everyday the great Health to the will excited second Ekahau Sidekick, version our second ramp its We roll and going and of of believe second will represent for in potential product half Clinic with rollouts, we're to half, Cleveland and exciting inventory. an up partnership Group, within unit, which

Center that Our set parenting are and Baby pregnancy our in great think unit courses, consumer we we have direct has business developed going a to potential. some which of

products had second really for we So there us of last in rolling really, half. potential in set year, developing invested do businesses, are the think out we're one of our that at every and have a that we opportunities and

Bret Richter

Cory, thanks. not With regards going the year, that. time, revise at in in and to we're that point earlier guidance, this to it's

with year, even we we're and in our in forward and start, to those to enterprises services of expectations to trends meaningful a as sort discrete our that we impact multiple think a business balance the to We're think lens. could sort good for as of But well community. of quarterly off on the that work the and widen decisions importantly, We're look a year, throughout by subject performance. with, communities On full broad particularly the it's the we a basis. advertising XXXX. I important global multiple trends reaffirming consumer products serves basis,

Operator

And from Rishi the is next from coming RBC. Jaluria question

Rishi Jaluria

on into Wonderful. both and I net gross to go just rate. retention wanted drilling retention the

in the So XX-month color churn from -- tick rate? any net look, well above the meaningfully but it to talked the know trailing looked it's tick it there increase like maybe did and some think, QX why down, -- net XXX%, retention did about a there's as down you rate, QX. the so retention, And it's but I I on maybe it, concept, advertising as

Vivek Shah

one, did larger if Yes. and place you advertising first start Maybe that revenues Look, our from in with I'll the think the clients pulling Rishi. that decline, some QX, of primarily what look back. took decline I came at

then would so obviously up net And retention. that show the in revenue

same the we those are some said, some of second for in seeing of terms signs their I interesting As from clients half. expectations

other spend, I challenges think what seeing ecosystem. think their the quarter did this first you're us. across I that I entire the is in supply really delineated I just happen the did with not chain curtail mean, and

be. and think, always look, business also would other and quarter-to-quarter. I I always will has can is move I and say in It is the it think the thing out lumpy. that been, clients advertising week-to-week And

some a So we longer-term at headwinds in a really, I the things look more it's function in we like to the basis. advertising just think a market bit But of these QX. little of of on experienced

Bret Richter

mean, revenue versus spots that of contracts. and customers. regards to this in the new in business manage that in our it businesses of customers over rate, large characteristics, connectivity enterprise adding churn our look a of the a for key of mixing broad was We we're reflects revenue that which saw are against I indicator partly the is churn performance of we as best-performing to With sort And since across a loss a opposed have But a quarter common Yes. small churn. couple sort that interestingly, large it's it's customer of set arithmetic businesses one business, -- revenue.

sure that little right which complex of overall, math. the business mix refine of bit again, is comes issue, metrics I And and we'll the believe businesses. it make different they're a of a just look them indications continue to the and in at a and out these mix it's So

Operator

question the from Shyam SIG. coming is Patil next And from

Shyam Patil

you even well. being that? remarks your you're of the considering elaborate good Can favorable, questions. about that Congrats of you guys kind your Bret, in a I that potential in had distribution talked volatility on between could you second Does on then and EBITDA just seeing remarks, question, just the and I results You're couple if provide third seeing I the by close you this there's to quarters? prepared mean as think environment. guide just with environment Bret, you Vivek, And revenue color in how M&A don't reiterated know opportunities? fourth was about the on of then and quarter, wondering more the about but any to the asset kind prices?

Vivek Shah

Thanks for the Shyam. question,

with step M&A, So back just and reflect about think to I I take which what on our go-forward one respect is acquisition we we accomplished year, think last when exciting program.

the of and X consensus, are a other have through cetera, et the platforms we variety voice some assets the So back actions, of including of today acquisitions. discrete now what spin-off for disposition company, of platforms assets, up,

We connectivity, robust health, pipeline they're company's martech. of competing, cybersecurity of and as have shopping, platform, has Each capital. a gaming, our know, opportunities our and for tech those you the

time, within those same X and eighth acquire got transact looking which platforms At strong platform. the corporate, we're entities. on the we've to So at for really always

it So is but of sobriety. what fair and is this, doing absolutely I a we're What you're seeing that the on public private seeing seller side XX We're is which in activity. that creates that. years in sourcing something we've been And just deal it you're certainly the seen market markets. market, seeing the seeing haven't in the the amount of

and we've never position add balance the today, the a that, liquidity the And so from the amongst in how amongst like in been sellers, had never marketplace to like -- of the views sheet our structured this. point then we're We've of this. view, combination

acquisitive. this this window we what that going that to I So interpret, time. stay some is will from point time view, is very a you for should my company. are of And think very think, for be exciting We open the

$X.X do to we've years, deploying We the company be XX last always continue of able different $XXX to excited can we over doing, will shareholders. But how and at environment been billion our in construct highly that, have get our can EBITDA, generate returns for a if capital as disciplined a we been. in better I’d size, to about million we midpoint, of start even what $XXX million, very

Bret Richter

question, provide connect with And we you. second recognizing but a thanks for dots I couple the for maybe can to don't regards guidance, first, quarterly of

would in the we of guidance our We've that order quarter. and on we, the second that conference when of the in call similarities for the results. over already sort that, year expect have fourth quarter to distribution the So thought strongest course, on [XXXX], of in commented we the quarter revenue which on we in lower particularly we revenue. first And quarter our our we QX fourth presented revenue, quarter busiest XX%, be our the and of advertising around higher regards XX%, with were seasonally is and order highlighted

and the a friendly, but of of feel So including macroeconomic through is less there's about be continue the good year, if there, get the you half kind over dots, than you We're we'll of the it's which goals. get is environment, -- to might connect those strength, able a distribution progressing lot we that and those towards been course the dependencies numbers, year. obviously second expecting

Operator

is [Operator Baird. Erlikh next Instructions] question Charlie from from The coming

Charlie Erlikh

size M&A. are again frequency be the that guys. that or you can about smaller in it's on sounds ask great. on Any would the size Vivek, would very from to the period and are guys exciting you terms more Could expect a maybe what be comment color of to wanted a or in for we the of you on maybe maybe like I the it deals just pipeline, that great deals frequency larger deals? standpoint? more shifting Any in color just more pipeline,

Vivek Shah

the the -- there's that business unchanged, of because right? generally And deals approach units Thanks, want to past, and we we the we've our those size are because of capital, would such our I verticals, Charlie, place is we And in by spread the small at various internal to the tend to those question. talked taking and midsized. demand deals. definition, the favor platforms, is Yes. kind activity sized various say for most about of

larger would deals: level. we to the the the define larger to said, not is either, deals at RetailMeNot how those We're I transact our us. Any million in those also certainly and which past, deal, large were we for open that for I've than have though, company. $XXX the Everyday territory, would averse unusual that the be been capacity to As Health deal, that, in deals have

haven't We it. done

think returns off concentrated that a from don't certainly But of I investment risk. and too well. that the if shut we as it's profile compelling, much are

is but are of $XXX a open And bit, So type that that. wheelhouse to in smaller we proposition. we value do $XX to quite take I still million think our look a than deals at the are million certainly

continue So will preference our spread capital. to I has to be think been,

In the targets we what time and to periods are. by and not most not do. to done of trying goal sensible deploying long -- want deploy terms for this not inside the set be company. not what X It's start try to we decade. I I on we're don't velocity, that that manner. me, over It's a we To what question, anyone of frequency I who thoughtful not to to don't in want capital we've answer because time. try capital is past ever It's over Y

the believe that. I be said, this from the want to I as And in So is wouldn't depart window. going environment not shifting to I small

think going while. this we're for a I to see

in sudden And rise I the will so of to and short patient happening. time. a be concerned that all a -- don't that I continue will be think anticipate unduly period we assets of valuations not can

Charlie Erlikh

and just you I'm then, mentioned Vivek, the helpful. bit in around that's guys potential the wondering causes on No, that that sites. half? you little of saw Okay. your really on also turning second fewer you that? the expand And business, confidence advertising can in a in if your clicks maybe And

Vivek Shah

we that issues saw where And to relates really pressure. and

on commission the marketing is advertising of and where the commerce as properties health generate and is performance gaming the customer nicely tech business, we in value and declines were important reminder, tech vertical. of saw affiliate So very businesses reminder, And from shopping site. our a an commerce. important business, our primarily commerce and marketing get part just did we It transaction. a the QX. and in affiliate the transacts, affiliate as in we Those that were part advertising when an specifically categories and declines. is That the an a for that performance e-commerce clicks us and If business and within shopping is of to our growers entertainment

So seen down, when down, saying clicks as tough comp. on were places, we think, bananas. say compensated XXXX probably sales e-commerce are e-commerce very we in a, many I QX same was which that commerce it's is get the that

to returned is at that a looking in-person very so people have tough this And as shopping, against comp. year tough

sort particular, saying our source commerce texture. For had issues. all thing, lapping It's is largest gives same of we've of us, which so in RetailMeNot, the affiliate we're probably you some the remember, single clip, all that commerce and where

that's hopefully, helpful. So

Operator

coming William is question next Blair. Breen from the And from James

James Breen

don't an So I more cheap on chain really I drive you in focus have, -- the on -- where chain -- a bit don't guess longer? economic pandemic could back supply going sort more snap bit. there just than of about what's or improves They supply little little advertising, see as is for more stuff for seems supply to business don't to the pick talk potentially the the guess. the assets a point stuff issues that that more could more at business is -- time? chain of right? a And but And the some M&A the you tipping post-pandemic, to the a like they have up weigh issues, from it to to shift want the product we advertise are and pressures Obviously, at obviously, economic point economy. like on At are then what weakness

Vivek Shah

it's that can I as that exist. know, that dynamics to macroeconomic you pressure No, will model the is what look, you hard, the factors business forecast control. What you're say we at and though, it's revenues to our play, pressure, Yes. like control is, mean right, Jim, create our near-term on we I such

for environment a On us flip, benign the buyer. a creates as it very

is an hedge, in These not existential, at confident for is and and exciting. as asset that so change. not that that that interruptions that disruptions everyone, are price And impact very that that, acquire generally these us the is us, temporary. at we we're that But impact a an ways. that we That And specific These and these a these systemic. view are are is and time, nearly and attractive, not is opportunity permanent, same if won't they're price. could time, price in the moments

that easier So But time, in of it's same to by help we feel second us, I but the point equation. it we've I second can't pressures the product better lost in believe in lose -- the for And us, the like at the get unique shouldn't well. are an as I've the us. as investments got QX be And the say RetailMeNot here. half, we've until situation, piece, dynamic will us made think in this we're some half does this a interesting in and up can't said, that for and comps

economy second mostly worsens, are show dynamic. of some the the signs Now in we different But seeing that's we a destabilizes think obviously, or half. if right up that will further now, improvements

Operator

question from The CJS next is Tanwanteng Securities. from coming Jon

Stefanos Crist

Crist in thoughts can for on just your today? Stefanos M&A you preference It's versus for us give Jon, share repurchases your calling

Vivek Shah

debt for that the And a value repurchases, I in weighing see various company as at today, repurchases past, low and described, have as done the are as historically which Bret the we capital, think share we're as for we you obviously, look, the in way our in capital we we've our always allocators, capital options is market I some it generally, and the multiple. Look, said, expenditure. when us, acquisitions, then said think

I flat getting I like very bottom in view essentially organic FX outcome, what headwind, take a, QX a to some you very strong a really print, RetailMeNot -- this exclude close have and X% line as you if good margins. strong feel if we environment, think I think, top I

we same we been news to like have presenting market opportunities capital capital there's our the a operating last the in CEO. us we of investment been deploy through of at capital At amount really in presenting the market the acquisition own historically. stock, been think other right is opportunities, since when see way different than for good mix, as now to when years, has time, see we've so the we opportunistic And that way. The handful and no for now This fair any I've the allocation time. come that's really

Operator

you. are back there Thank remarks. like now hand I this call Richter any to would no to And other Bret questions at in queue closing for the time.

Bret Richter

a earlier joining Paul. We release the month month you investor all QX very We And in this you press plan XXXX earnings regarding our of Thank today much, May. for we during call. participate June. later issued the participate us you in to this month appreciate your at month, conferences those a Have and see We you events. thank of again, some the we'll plan of hope for announce conferences great interest your participation. And we to to day. during that

Operator

Thank you, today's ladies gentlemen. and conclude This conference. does

your time, disconnect a may for You at your wonderful and day. lines participation. this you Thank have

Ziff Davis (ZD) 11 May 222022 Q1 Earnings call transcript