ZD - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen, and welcome to the Ziff Davis Fourth Quarter and Year-End 2024 Earnings Conference Call. My name is Paul, and I will be the operator assisting you today. [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 Year for Good Davis XXXX. the Investor Conference QX everyone, you. to and Ziff Thank and Fiscal

Officer Officer, Vivek As Richter, I'm I mentioned, Shah. by of Financial joined Executive the And Ziff Chief am our Davis. operator Chief Bret

you is the viewer is presentation allow webcast, which a on the presentation there the slides. today's our right-hand website. will copy of call. is expand A on A When on side, for this available the available to you launch button

have not you you at our received If the a press may corporate copy release, www.ziffdavis.com. through of access it website

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

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

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

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

of filings, X-K as webcast. include, risk our not slide filings, risk factors XX-Q we the to, the as filings, statements proxy have but that well our XX-K risks uncertainties we Some limited factors including disclosed for included have part recent are filings in and as and show various those SEC the that additional of

well language refer forward-looking those We harbor regarding as as in you to discussions statements. safe documents

supplemental measures including the to addition, equivalent. business In are statements reconciliation nearest following our non-GAAP for slides materials, outlook GAAP our

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

Vivek Shah

everyone. good and Bret, morning, you, Thank

best diluted spinoff nonetheless estimates, of growth X.X%, our quarter quarter. level XXXX the and revenues against and came those the in was up we year of a While consensus. XX.X% by generation by QX our of since highest short it in measures, grew cash EPS our Against free the revenue our flow sanguine admittedly we bit adjusted

anomaly. view came our of of just $XXX couple upside up some to even much humble it unusual own well it QX, games up of as parts a very expecting connectivity simply $XX We materialize in as outlook falling revenues. in bookings as million million quarter very nearly short in It's revenues of an adding but a our business, and did of We in portfolio miss roughly were XXXX. for the us slightly none for estimates in out business, a which diminishes our not our total some touch to with

which XXXX We to build since included on plan year full revenue XXXX. our results, our highest

which to priorities Importantly, XXXX cash long and of outstanding flow, the free represented a the return company. has growth line bottom been

reflects for X%, acceleration X.X% adjusted from of growth Our of outlook to improvement X.X% an for EBITDA our XXXX a growth XXXX from XXXX to midpoint is revenue X%. and

investors in We addressing meaningful believe structure market hopeful implementing underlying will of the there between better gaining appreciation intrinsic we segment fundamentals. reporting and and of committed the the new this, aid inherent that strong that disconnect and are in we value company to We're our is our current are business. a a value understanding the

and of our believe X our performance we businesses. the investors reportable with We and into X will structure transparency better transitioning this reporting greater aligns to are segments, with strategy key from provide

IGN, Humble CNET, brands such includes Spiceworks Shopping, & Wellness segment Bundle. segment same. and Gamer will and subsidiary Entertainment, Media PCMag, into Gaming Digital segment Technology and Gaming Health and reportable and Tech the disaggregating segment are and RetailMeNot. remain The and Entertainment as its and The The Shopping Martech including Cybersecurity Connectivity. X segments: the comprises entertainment & we IGN brands, Network Specifically,

Health, Everyday Health Ekahau. Everyday & brands, and including segment including Health Lose RootMetrics The comprises Downdetector, segment Ookla It!. comprises the brands, its and The Speedtest, and Wellness and subsidiary BabyCenter, Group MedPage subsidiary Connectivity its

of historical with dynamics & It's some these X segment. each understand provided segments. have revenue worthwhile of We by Tech some years of Shopping. the of Starting spending time trends and to

see of spike major in You revenues COVID a meaningful and of XX%, can M&A combination was bump. which XXXX in a a

This lead-gen with headwinds. segment and growth BXB deteriorating segment than continued from XXXX category, some The comparisons business. and the XXXX tech benefited ad XX% shopping tough with far shopping XX% in Overall, rapidly very and were any people online. the declined offset returned to over BXB and addition that a more the other by segment growth staying in home X-year XXXX CNET, and period. nearly challenging of

bottom this Entertainment has continued been believe a the segment in XXXX, consumer Gaming on of CNET, tech expansion and margin on BXB. line the especially grower in will focus years. grower profitability We of and be growth brands a our with in number strongest for other our mid-single-digit

has it growing great balanced more monetization scale, a a is of models, of category. to one there's and While IGN potential through particularly acquisitions. leading deal it's smallest in brand the segment, Entertainment our a

Wellness robust loss The It's And to in trusted XXXX, is growth slowed been exciting reasons AI-driven Connectivity next fast-growing will its believe growth the network. many & nominal they It! nutrition Wellness have to app. we leading rates. & Health long hospital access to their each media elements, including care Health and and weight Lose tracking have while X which segments, return has many portfolio, more growers. so our fastest

our Ookla this valuable Ekahau major gains being for were as growth and we up near-term reorganization, for to exciting scaled is been enterprise. fully units growth. involved Ad be We ambition as in sacrifice pipeline. Pharma see combining a ourselves to upfront larger, a buying our which willing promising XXXX undertook set strong the business to business just portfolio. business We XXXX long-term most a season long-term experienced our benefit in with should an has retooled a In and that drug and a business most that Connectivity from

within revenue well other and also as some noncore subscriptions business as the to connectivity We're streams entirely focus ad on data. deprioritizing

this X segment in is While only revenues growing improvement then expectations will have disciplined return XXXX, And the in to changes decline growth is for through with our in XXXX, X% revenue the second the pointing there's segment, We that segment and EBITDA reporting declined the our XXXX. achieve in the over almost an Martech first of worth will in years. a in segments It we out all it of XXXX. few we declining time almost and if we half believe was this XXXX management. expense X% XX% maintained margin been while no to a Cybersecurity

our initiatives. AI to Turning

our recognition. of market innovations receiving are Some

Our capabilities AI-powered featured voice on were Lose CNN. and It!, features the in particularly photo logging recently

it tracking, nutrition of The article how our specifically a photo technology as is taking as meal. simple AI highlighted your transforming making

In an addition, with as the in an AWS since reported applications job has generative a recently XXXX, seen AI job uplift their AI engage engagement functionality showcased the study. deployed who among in XX% they've Health QX fit tools. XX% search AI-powered eCareers analyzer Health eCareers case by was with increase job users

impact few I key discussion industry While there's want AI's been potential to points. a on traffic, emphasize search about

traffic traditional roughly our our well XX% First, beyond revenues. ad diversified of is with revenues monetization overall business model traffic-dependent representing

of search traffic, our XX% visits. represents within roughly Second, our

our AI to results overviews with top just XX% respect of Third, remains are search present presence queries. our limited. referrals, in AI's

click-through comparing overviews, with on include aggregate now positions our shows Lastly, material of queries performance. specifically no analysis similar year-over-year impact that rates, AI

dialogue and as background At all about that at Given company, DEI, and to about DEI seems DEI DEI relating belonging. clear practices we I fairness, our so has at view and the finding always dialogue can exclusion opportunity the about DEI are Davis. important being thrive best to that is it's regardless of programs this important all be moment our created. the talent Ziff circumstances, because value or reiterate unfair attention we'd to that ensuring equal preferences, But that think here. very and about practices of suggest it's and what much means of entirely been

also diverse at the Davis DEI us business let our business call me With Our appeal Simply best that, the maximize to knowledge hand therefore, across DEI out capital. to we landscape. imperative building audience Ziff possible and back it's We're our helps and outcomes. reach in the work work. Bret. drive a that put, is intellectual is

Bret Richter

Thank you, Vivek.

Let's discuss our financial results.

results Our financial earnings reflects adjusted for fiscal release and year GAAP XXXX. QX and our both

We prior will QX in today, our our relate and discussion focus my will to commentary results XXXX financial comparisons. period primarily adjusted their

of QX our X turn results. financial XXXX to Let's the for summary Slide

as prior X reflecting new our reporting Fourth X X, $XXX.X the addressed quarter period, was revenue of and $XXX.X in compared his X.X%. Vivek million structure Slides growth of with revenue year content the of XXXX As remarks. million for and

growth. was the EBITDA as year million prior adjusted XXXX reflecting period, quarter Fourth million $XXX.X with X.X% compared for $XXX.X

adjusted $X.XX. This reported margin a adjusted our was of XX.X%. fourth figure adjusted the XXXX with EPS for as results. reflects EBITDA QX XX.X% compared Our increase quarter We diluted quarter

Slide Turning X. to

total year as EBITDA reflecting XXXX million Our year Fiscal XXXX to primarily compared year growth XXXX X.X% the adjusted X.X% revenue. to increased fiscal in with fiscal million fiscal XXXX. year $X,XXX.X compared as adjusted $XXX.X revenue grew with EBITDA,

EBITDA and XXXX. XXXX was relatively as year compared margin XX.X% fiscal adjusted year with for fiscal Our constant

year both EPS XXXX, as EPS growth $X.XX revenues, diluted all the Reportedly fiscal prior EPS. diluted adjusted compared year year EBITDA, adjusted to each as quarter diluted year-over-year compared Adjusted and the comparable adjusted fourth grew with for fiscal periods. XXXX X.X% and with reflect

our XXXX the EPS. and of quarter negatively flow-through adjusted this adjusted QX expectations, shortfall short However, fell EBITDA revenues fourth and of diluted impacted

games and a of our Humble expectations significant of certain most driven Humble delivers Humble couple underperformance X QX generally Games the our results of than to releases fell were other noted, of businesses. Vivek as of titles. moving publishing business this by connectivity as XXXX into publishing our our shortfall As combination a business. publishing contributors short Games well less predictable new

level prior sales our of on in was data would in release have expected did As on not Ookla activity absence slate deal existing and calls, certain for resulted in historical that large games Connectivity the focused development XXXX that XXXX. QX of we revenue delivering QX see recognition. and the are of including noted

included do also not XXXX the as an in These against an unexpected also tax of look reflect EBITDA. matters amounts revenue indirect adjusted to accruals, impacting netted XXXX. which that a QX impacted results see indirect we revenues revenue. strong contra prospects, resulted reported audit, which either of these future we forward However, item connectivity's tax were certain and

revenue the to but large and impact we management growth. adjusted year-over-year, of While the and our we in allocation Overall, Fiscal certain which as moment. EBITDA as particularly EPS, company QX these important well. adjusted the were none delivered scale overall of cumulatively, will our as balance they for decisions performance. both high XXXX compared revenue in single-digit return not sheet of grew decisions year XXXX activities, items in impacted negatively to performance, an year was allocation more I diluted capital our growth capital detail only those reflects and cover a of operating our

advertising our for performance revenue, prior X.X% and and fiscal and XX QX QX grew our year X compared advertising primary reflects in and reflect marketing fiscal XXXX, of Slides marketing Slide as QX XX.X% performance revenue of excluding and advertising performance by and grew and tech sources performance XX% period X performance our marketing would X and business, for and and BXB XXXX. have by advertising grown year the marketing all advertising revenues performance revenue summaries as licensing. revenue. compared XXXX XXXX subscription with marketing XXXX year and with X.X%

table fourth the bottom the of X Slide depicts metrics The operating for key quarter. at certain

$XXX,XXX, than XXXX, retention advertisers a measure annual as quarterly average revenue an XX-month advertiser XXXX In the QX fourth advertising comparable for metric. compared Ziff XXXX. significant and the QX higher revenue more was had of than approximately X,XXX net quarters, per with Our improvement Davis QX with XX% significantly

licensing grew includes XX X.XX to customers, increased the and period Slide X% XX XX revenues Total subscription nearly Humble licensing months. Slide and depicts QX licensing revenue customers compared fourth year metrics and our last with It!. on for approximately performance. prior revenue subscription Bundle the The Lose and during subscription grew subscription as licensing includes growth XXXX table and of these the bottom quarter. the and at which X% million

to $XX.XX the and revenues our revenue $X.X to regard per XXXX customer licensing year-over-year was and XXXX. million Our was QX X.XX%. revenue, churn from subscription QX $XX.X With balance in company's other of average million declined quarterly

With regard Slide balance to please to our XX. sheet, refer

$XXX and and As million of approximately of million QX XXXX, had equivalents long-term the investments. end we $XXX of of cash cash

capacity leverage leverage significant on continue gross also We have both basis. to a and net

the leverage XXXX, X.Xx EBITDA, our XXXX and our X.Xx net if of XX was at of for was As adjusted activities. active of allocation was months you our end include very a the gross X.Xx leverage year investments. only trailing long-term value capital

significant foremost, as and reflected compared increase and XXXX XXXX with First in a activity XXXX. M&A

million During XXXX, current $XXX than for more deployed and we year prior acquisitions.

business and transaction Martech in small marking fourth its Cybersecurity closed Our quarter, acquisition first since XXXX. the one

QX of notes $XXX.X offer due million XXXX, during an X.XX% exchange for reminder, a As convertible also we XXXX. our completed

As our a extended X.X million than shares million result the gross convertible this principal reduced the by outstanding debt shares. by $XXX underlying our transaction, reduced of number debt of of of our the amount million more $XXX and maturity debt total we've of outstanding outstanding

this to our is million shares outstanding our the in in $XXX as in During common X.X% repurchase million a XXXX, of were X.X XXXX. beginning of of we approximately shares Included than also open amount of the deployed capital shares. more repurchase market

any continue opportunistic Although to the there be repurchases. the market our not to fourth regard repurchase stock X.X million authorized with were than did under we we quarter, repurchase open stock future will in shares remaining shares and program, more during

of is allocation M&A in most capital one assets particularly Our and overall our the our of balance valuable our sheet strategy. context strategy

of We of look continue M&A forward and beyond. of across significant transactions and in we XXXX sizes to our various to activity all pursue a level businesses,

XXXX relating Slides guidance provide and to to which XX certain Turning range. XX, our details

EPS the both end range. diluted high revenue, adjusted and end low guidance Our adjusted guidance EBITDA of in each the and at metric growth reflects range

an reflects guidance for reportable improving outlook our segments. Our

expect performance challenges. specific Wellness we particular, certain Shopping to In Tech & improved lapping performance & Health from part and XXXX in due

We from our growth. increase growth expect connectivities and Entertainment in & significant continued Gaming business a

Finally, and Martech to we continue improve. Cybersecurity believe will

we reflects diluted approximately revenue with unaudited The EPS high the end XXXX EBITDA and our for rates growth adjusted adjusted X.X% results guidance of compared today. of as X.X%, and XX% present

The of respectively. EPS, low reflects adjusted diluted for X.X%, EBITDA approximately end revenue, adjusted growth and X.X% and X.X%

each the EPS expense, share net Our investments, higher from and a slightly guidance average higher taxes count our as higher lower adjusted reflects recent interest planned compared and XXXX. depreciation capital EBITDA range, with

as mid-single on year modest with compared The mid-single-digit each expected performance revenue half the in growth the and midpoint recent licensing function half. first with reflects a midpoint from in is revenue of and growth low and digits growth, revenue, revenue a marketing and The the low- growth higher of subscription XXXX acquisitions. rate quarter growth guidance of our growth teens in both and growth advertising the the second reflects of growth to inorganic prior period. compared as revenue in the first also the year organic

the to compared performance for muted as quarter first our expect expectations be We balance with the of relatively our year.

rate year-end Cybersecurity Our and expect quarter QX XXXX closely for the particularly more run reflect reflected XXXX strong Martech, to the of XXXX QX we results a and business.

expected with and to suppress spending as expected margins QX continue have are QX initiated compared initiatives, We XXXX which to certain also XXXX. are

and However, pursue improve full to we expect growth margins quarter second to to our as plan. year growth we begin continue

range, Given marketing XX.XX% for the of as of an compared XX% XXXX. the of margin the that the our XX% rate rate of quarter these maintain At the of we the realized to year, an range improvement expected Note, annual adjusted performance rates We fourth fluctuate with quarterly. tax at midpoint will XX.X% with revenues projected EBITDA advertising first and approximately our to seasonality more a XX.XX%. are in of approximately between the slight be revenue, our expects and quarter. anticipate have our expected in than company

repurchases or does XXXX. reflect incremental share guidance not Our M&A additional in

maintain believe believe We capital and substantial profitable pursuing plan adjusted growth, we as We and leverage have the the an to rely of if and reflects we generate this And earlier, flow cash to However, circumstances larger guidance to the capital to capital continue robust to on in business our growth right support arise. margins on allocation our delivering continue support to free free allocation in focus initiatives we active cash flow generation. allocation beyond, strategy. opportunities noted we capacity balance EBITDA program. XXXX our to support investments proper plan

for outlook including our slides statements nearest various non-GAAP our the Following business are reconciliation the materials, measures supplemental to equivalent. GAAP

XX, net Please see reconciliation which provided cash Slide includes free of a by operating to activities. flow cash

compared a increase was cash million, free $XXX as flow XXXX. Our significant XXXX more with than

on shown million our this year million. $XXX.X compared reflects adjusted XXXX. QX of flow of XXXX cash as QX Fiscal flow of As nearly free slide, XX.X% EBITDA with XXXX XXXX cash year doubled fiscal free $XXX

figures a These with activity the free TDS capital seasonally quarter. contribution the which during of TDS our is include high have Consistent first XXXX, expected working business, from level fourth flow to a in significant quarter. cash has and significant usage

marked Vivek strength upcoming marks a these we that hope to you the growth of the businesses diversity of of our for presentation results margins. appreciation This a we As our financial excited intrinsic and reporting of the for segments composition, return we of this ultimately a noted, year the our their beyond. We why our are structure give information the and investors new gain company. look scale We understanding of stakeholders will call our presented With revenue will this deeper each businesses into company. will information, our deeper clearer of and today and develop the we value trust also insight that XXXX. a to continuing reportable XXXX allow in believe that of of the growth to forward

us on would to that, how I instruct for queue questions. to you now operator With ask rejoin and the

Operator

Barclays. question And coming from first from Ross the is Instructions] Sandler today [Operator

Ross Sandler

question from look a shift Web macro we to of Performance digital about advertising. the kind as might Plus AI 'XX. be like just environment away into walled tools into there and Max Open Advantage that maybe start from the gardens and like some like a view out wall the Vivek, garden these increasing of There's

pharma we organic by what the here. are that would So looking impact, with least at in for X% there? to it category, having having rate of love guys, the that's in you that at growth in good described too are And and isn't hear year 'XX being rate are sounds but like underlying things beginning shift X% to an much how here, a growth of this advertising, just upfront assuming

Vivek Shah

Thanks for the question, Ross.

tech zoom So moment the Obviously, let in consumer of a ad within relatively a XXXX. was of business. little growth but strong tech point ad next consumer I the me is strong. into was out the a quarter, QX going is -- out one CNET our was rest helped will just terms And just The that our business ad over quarter, XX% in the with ad thing in tech BXB number growth. year,

I've And from business, will as about planned in which the a have detract but in talked growth obviously that improve profitability. reduction will past, in rate we revenue

to just in that's That's rate. points basis of of growth just XXX probably keep headwind mind. something So against -- their

think into So tech, up really continue our this picking now as next year. in category a reasonably ad to momentum good that side. gaming in the entertainment, disclosures, from that's you the segment on again, about but growth XXXX particularly new We going and can segment, good we feel on see

like category view. that point So from we a of

for flat challenges those had working advertiser. pharma in a XXXX. historically a been, as us think some very are We we relatively business large grower. It's their challenges was with Health strong a about very out. you'll talked & see, I way Wellness

that. and in noted been really have really, we good strong, the my upfronts about prepared I feel so As remarks, pretty

last look mean this the a to I of category categorically. say So outlook it at at years. look, our mid-single-digit given prudent and experience category you I -- couple But ad of overall, a we've growth is kind just midpoint had would is the got that

growth do about and X% at around from Wellness outlook, going didn't accelerate & you X% key I XXXX just that at the is our ask growth in it's gaming. to improved think but know growth continued to out and pointing worth midpoint Subscription about I in the connectivity, to business, also at overall that we're Health

trends just half Martech. some And improving we're in then second and Cyber seeing

look, a So lot here. there's

the I we're -- just over I couple cautious think we're last some of had about years. think we've being experiences the appropriately as we think given of XXXX,

I'm each say thing about leadership in did gaming because each position that our main ad in just ask is gardens. of So going you and of think against in Last versus sort to shopping, of Open right? that walled those. I our of -- tech, categories, do the in will say each a Web we're I large health What

networks, will they're in tell what within they're marketers And doing what with what they're search to I you want endemics. what that against is doing balance social doing

be so view we as these ad categories, which endemic ourselves in categories. to And pretty robust leaders being happen

So of small I of I rest proposition. more a think is we're it's our in a of maybe different position as think where web, you equation. programmatic than know, open overall And piece a the the programmatic-driven

Bret Richter

that. curve, tremendous it the the amount inflationary not continuation, be escalation whether in of plan. constant elements views in of say if thing was might domestic and relatively We've macro, the on and you for moment, advertising there's macro If it's same, I activity whether international be activity. have word in and essentially very change only if if our broaden the massive you to XXXX, benign. adjust lens dialogue, just of And I but it tariffs, essentially used were the XXXX go we the would assumed economy the global just economy shifts, there XXXX, The the not is headwinds. are and of the for the a it it whether obviously global be macro, at into economic beyond feared the add,

Operator

Arounian question The Ygal Citi. will next from from be

Ygal Arounian

know environment. bit the And through press allocation. broadly, more on M&A. and but been you've around I with XXXX. start we capital I'll And Why go focus and views M&A leverage little I as patient a cautious guess, here? your not your

any in that? targets up about talked back thoughts with and M&A? you for your your AI as And up for stock do views well? does much have that buy anything -- picking I this didn't Gen around does play building Does into it M&A XQ. to think year are or how You What

Vivek Shah

Yes. Listen, great Ygal. question,

So We about an and point view. $XXX deployed that's M&A of I'd in say, from million, after no look, remember, XXXX healthy deal almost activity was XXXX.

I things worth think The is noting right do very that So are it's pipeline happening. now active.

so hope we're deployment XXXX will serial this been at acquisition, a terms consistent to absent capital a M&A least been which going in for have our company years. hallmark be of of And last is start that compounding several the versus then for effects XXXX. but And the of long have seeing time, for

other did robust. The reportable and since X QX actively pursuing pretty with few wasn't very necessarily pipelines are the say our divisions, to last X which of in segments, XXXX. our Martech But X deals. focused case are Cybersecurity respective all I'm over is the first its thing that going All are deal that years. are

So kind on firmly the of they were and on the they are back field. sidelines,

as sheet We view a that an obviously, for point have new an of operating that's a view of being something us. we from opportunity vertical. capacity add the and balance attractive if from to point see

the fears that We in to what attractive AI we be you from Obviously, digital attached sort into think, own rents. is stock. must some we fears. that your of own listen, then to inclined And brands we that which question, Gen with experience right? here multiple right media that, can do. it, extract attract those But now, pretty valuations is And our our to think of see we're audiences are great it reflected speak I lean in

of -- a you're view, going have see brands strike. we see struggle to from have us that so view, if from we some our of may where that's great point point And if financial

to anything But So of And we some in impatient I pointed borrowing you'd And line. there's the cash, some been out, have look, we also get between ways these think I'm have have a about finish add? things balance optimistic patient, but across look, the we're it. we we really as the Bret, capacity.

Bret Richter

one is initially. have The what is you're on price. thing There's we Yes. I'd success on M&A only no element that's than more be that always add M&A factor patient paying in the important to

or lot deals sometimes those done And that's the pipeline in of don't to where very done. of some a fruition. active opportunities. come we're get And and get But very, exploring hopefully,

do capital. and it's a want not in deployed a retiring stock, company $XXX $XXX the capacity of did the which stock a will capital but just Vivek But active on capital X.X% buys basis. don't exchange since we worth and we wouldn't in the with. million over here, that we if million I for been a I of in years think down programmatic expect that debt programmatic certain we deploy far every another some maintain stock are most XXXX allocation ever M&A, you the year approach. X Yes, every On our years it of convertible shares I've started it the We allocation, quarter to X -- our been we've the million spin, buyback. that of quarter. away paid amount is over M&A. mentioned period. back the $XXX bought of We the

addition I think in it's our the that important that to in summer. back X.X Board increased in million the we our XXXX, shares authorization bought

execute capital allocation authorized against over million to and all shares we'll have we X balance opportunities. other currently upon, So that

Ygal Arounian

what strategy and for in And repeatedly today LLMs thoughts or kind a talked We how legal have licensing out Okay. seeing a updated particular call of a I on company until taking action as you're the up the not just traffic is. yesterday tech and Google around away media saw if follow-up Vivek with could that. and action about of kind file

Just your and here? what around partnerships your updated thoughts approach are

Vivek Shah

so think see Listen, I that news. I today's -- did

They notable decision licensing that think open a was copyright relating to court discussions owners. are that's we X news in copyright fundamentally, and I to more week look, the fair a use having agreements, ago, I was think I around And or but think very to favorable copyright in value. think having fact, to after copyright on that fair them And versus that a be be violation. is to need need they long focused it need to for license I recognize come is, an they not people more agreement term.

So numbers long-term short-term feel to beneficial think the you've anywhere material seen move patient be and that quickly -- we don't to need for we're numbers might for us any here. in company. deal to be not going publicly reported that but to of are we're cut -- going think I a the play the like I appropriate

think training on I fair compensation focused on to sure that we if our retrieving are get making content, our content, for that. we are against if very need look, you So you're

On your search, which but or is prepared which X come in that I might happening within the I a remarks, X separate, fair statements other question, what's said amount right, reiterate I is rate queries with against the to appear to matter XX%. up at at our relatively still small least which own overviews that most us respect which experience, is the at AI

first So the that's thing.

-- also queries -- past overviews and are But out present that our or present are search were today, AI rate our overall then in unchanged the we that rank the of remained analysis present not relatively in point unchanged. and second is thing is click-through I'd but the where

are who that argue queries of There AI those are from rates. certain presence that argue actually those AI presence detracts enhance overviews click-through the in click-through of who there So overviews rates. the

categorically. depends probably it think I

other result ad of experimenting types many search things the placements, I page, constantly. on changes. are think evolve Google that there is engine

I a compensation. or So stuff large there for compensation, I language us. around models as quibble our say, meaningful quibble see without don't using see or traffic, a traffic more offering cash should cash is meaningful us again, I

Operator

Capital The Markets. from RBC Jaluria Rishi coming next question from is

Rishi Jaluria

new Maybe the strong performer to past. the it's I business. go been in back disclosures. Health want a Obviously, & generally Really Wellness appreciate the all to

As we the lot in forward, think concerns that given just the and administration biopharma looking RFK obviously, a new advertising, of position. around environment, the

alongside about Just you're what the broaden the maybe puts do there expand smaller portfolio, takes opportunities if you to factors see to that. thinking how think Wellness be in we that around of M&A where macro holes should able do portfolio kind sub-vertical? of that, of your that Health maybe make the all and and And about just any tuck-in we are & within or even scope

Vivek Shah

for thanks question. Rishi, the

So you're -- the administration from the a from direct-to-consumer advertising. from there's and noise HHS around lot of Obviously, been right. coming

of this every Now almost isn't comes years. DTC predictably new. handful up

think it. legal challenges I are banning real to there

think -- I successful pretty are making really that lobby been interest frankly, vested really in have that there of none materialize.

we're So the And television we where focus of a frankly, really it. is, ads, which not play. not on concerned about is lot again,

a lot noise. but It's that. we're it's And look, don't There's in like not in are lot into things going that the So we'll if I watch. it, materializes, outlook. a see And way, just of built think any our of we certainly something to happening world. that's see

think -- strong. are upfronts, as And side I the mentioned, as are DTC I which the on

nurses. assistants point the is also are thing provider DTC have The against where physicians, registered those ad other is which write and do I'll that diversified out prescriptions, we a between business marketing and to physicians fairly who direct

up. changes And so the potential come -- what that from where view. hasn't an that hasn't discussion of certainly advertising permitted an area is point around That to been

acquisitions respect pharma opportunity around I moving Everyday question the to think an Health, your beyond agree at for I company. that with XXX% is

Everyday is to of widely And been tracking, business tracking frankly, business, the we've its Health. great that, This has its Lose its us. love growth, a been a able And which within product example how It! those. of through calorie example accelerate growth to and do capabilities its of is macro subscriber more ad We'd successful acquisition. a great integration for

that be interesting. appeal So would I think consumers, that I think, app-based to are things

the think enjoy Everyday given of female within we sort Health. audience that heavy I

of extensions pharma I to think are fitness think, around I that that category. continue I that beauty could support that lifestyle we're ecosystem because and things into within food one get connect monetization lean elements absolutely then there other marketing lots Health. into think primary yes, we and I of going is Everyday to think to the And the the

space. the for excited very we're So

believe in This very It has in historic rates but return been the a flat for see good growth to its in XXXX, was disclosures. it us. a you'll As we XXXX. will category business

I to we're this. looking excited number for we're have on do on shareholders call I excited this a Look, and you for a more it's all disclosures. to appreciate richness opportunity all new the of showcase So investors reporting. real for the in been parts think segment a real the better business, and for us parts of these And know certainly, new company. the of segments, allow the people it. There's

at. and time, some there EBITDA, And to see mean So it adjusted would that of to EBITDA I those I market encourage for value potential of then each think ultimately, current you'll look X types, there's I you in segment. market think lot comps the company. that I and you start here as of that spend a real well be at X would historic segment value the our look a everyone some each revenue of by are one segments, excess to find values, we'd segments assume

Operator

Robert from ISI. question Evercore next Coolbrith The will be from

Robert Coolbrith

have Wellness. & couple I on Health a

side the Just the consumer could of versus we get an provider on update business.

some I last in there think trends you had noted conversions quarter.

I buying season commentary in maybe reengagement you're to seeing, questions, brands. strength large the that or had upfront I with the response of the think On you in one of think, one some referenced,

buying engagement also we've talk generally Maybe just if some generally the you think of the as about -- seen with part turnover. the CMO upfront brands season. some I

quick us exposure said one And have low, a Can last Ookla? on pretty give past, follow-up but compounders. quick the one GLP-X in you the you just just remind on there. I'll us the I then think on And there? update it's

Vivek Shah

No. Yes.

Health all questions on great & So Wellness.

fared was the say direct-to-consumer. owing the direct-to-consumer equation. on on that DTC the marketer We business there And that -- -- had I will more business, large than business. the a that result, reverses in to XXXX's direct-to-provider side the headwinds direct-to-provider the itself. of So that the the my around was better believe upfronts of comment, We commentary DTP

growth large others. part This business as in we the part frankly, business. as that, the is of a of as not this see business We're a

both our than good advertiser ultimately, the more marketing we're maybe is one largest, largest feel in it think place in a others. I strategy, and not DTC we of our like affects So But DTP. XXXX, when in pulls back because business of changes

underlying are insertion We right? we reach It's the just all to orders to products about campaign. the the there. The our orders, got win to and ability have run win to

is it winning really So contracts. about those

the lose actually not GLP-X material to source it of a it is be. On It it. strategic side, has revenue, but think can we connection

need of a need app, calories from et not that what prescription GLP-X drug, take of benefit sustainable long-term with around to burn, just calorie management this hope seeing So you pharma, be tracking calorie-tracking you So GLP-X a to your right? loss this idea the the to consumption to to cetera. is weight lifestyle really be it's even you're tracking activity, and with payers lots attach and need and you need true

bundling think going the And I so beyond. also what's we a we're seeing XXXX us business. GLP-X think there's the to of and some available fair X, that's in and to part interesting of driving Lose be It! of But amount advertising

Robert Coolbrith

a unpack made give ex a through that quarter? some Ookla, it. have connectivity onetime that didn't maybe through again. of comments how little Got historical things sales sense quickly And not and coming the -- you bit the come back those of you would some just that about to performed then Can going the in just data

Vivek Shah

pointed is, can X see headwind I ad bit it in kind get experience. It get the it's thing subs, Yes. this disclosures, is in I the the even small. of that And strategic, business, is probably should as to deprioritizing we continues other, revenue that, fair the from and ads think, of amount to you other I little not before smaller, No. ads, distract other out, a to lines, track and have mentioned, new we're

certain in managed being of kind is a way. that So

the where about pretty significant. time say of the kind has that would this -- X But I will even of When business of significant, core the the business, from has business, what into lumpy another. of time there view about this it parsing to there's happen just and dollars out done. the XX% changed some XX% senior out core that leadership of also we're quarter and I change are was in say shift of parts reorganization the within So will organization.

high-quality So when a this Stephen came big industry a to real executive out to business, and who business. become reorganize the had who oversees a of really for up telecom how Bye, that is vision business really in, he set seasoned,

this year, look That at disruptions so certainly year be rate for this you supported This was an us to issues. And is QX the mean, would is going be business. types we a it. some full there year. that. the We the I not of for knew engine forward. Yes, when of But growth flattish going

Bret Richter

specific ago, we I'd I I'll licensing little onetime only sort several thing it to subscription made the of recognition think that that businesses. have within a that, products fact there is our various revenue, business of and and is, noticed several to our just And you might in be bit commentary the add revenue a quarters subtly, maybe upfront we've little some to of redescribed subscription impact highlight that more the

millions quarter-to-quarter. of measure some mentioned, roughly see handful quarter. necessarily dollars. a relative lumpiness mean, to a we Vivek on XX% that of from for those quarterly numbers while and enormous, sometimes success basis you this of aren't can And expectations And I our

more I things in business a QX the Martech my that was our of rate remarks a One Cyber, XXXX, highlighted strong XXXX. run in and of expect in had we

we it -- We we So time. little see that in saw the businesses connectivity quarter. bit of a to fourth in from other time in see

of of the Sometimes attractive overall but underlie revenues subscription revenue and one of quality broadly benefit, sometimes it's a streams. our diversity frankly day, that of XX% most over licensing of the at our of is headwind elements the it's at end the the revenues

Operator

The UBS. Kuntarich Chris from next question from be will

Christopher Kuntarich

this second year? be Just EBITDA your year? to return then one Can will Martech you the the how weighted of than and would here. of have we seasonal the describing be drivers And should starting that half growth on this? expectation the thinking seasonally X Cyber of this revenue? what towards questions just you're XQ more for sort about weighting Is EBITDA modeling just of in unpack And drivers growth just

Vivek Shah

inevitably as bit overall quarter. the give amongst elements guiding texture to performance. XXXX of get of texture we're I goal And I'll expectations think different any foremost, but of to we those certain Variations give a its amongst will a we're businesses the performance. and company businesses, Chris, some and not first But did year, here. Yes, given little over a in businesses, our at mix over looking entirety only full of

Cyber, regards multiyear With to has been improvement generally a this Martech, story.

better. it's of rates you years gotten the going couple at at XXXX, look If decline the and last some you look of back of

cybersecurity performing Some businesses out our within of called better, been performing have Others the Cyber well. been like in have Martech, businesses. we particularly e-mail

the like 'XX But expecting beginning course There's we of business. end of in businesses, a some of little We headwinds businesses. are lot 'XX, of a Martech this to of the of the our we're And general expect bit have some -- lumpiness 'XX. over sort there some the do year. sort map in There's business. improvements of large business. this is There in our licensing more some had in this customers

is in driven Seasonality performance really the the by Seasonality. businesses, advertising and heavy quarter. fourth marketing

marginal EBITDA the because and consistently. incremental we revenues that think see bottom reflect line. those to flow-through I have margins And high that

we to some I have mentioned sort the we line. exact first muted expectation have the are business top in to the Bottom dollars see growth spent that bottom be both a line spend on QX, and for that of what spending parts need fuel is of and initiatives quarter the my other back we'll expected some timing because these reasons of line in we to remarks, the year various in of and in is. and also

various we've taking we of about We the areas X out business. have the back BXB, pockets couple X the of different the to between think a had year but margin in segments. across strong there revenue make of businesses, that with strategy down I may They this of of I'd a called points challenges, do up. that vary is margins, get commentary reportable

I'm think months. the the we So a the we what a view think more go texture back, bit enterprise commentary, I take again, little to lens and entire a little while XX over next bit holistic more happy to need provide widen and do about can

Operator

And the Patil will next be Shyam from question from SIG.

Aaron Samuels

to just about I CNET. Shyam. for on Samuels wanted Aaron is This ask

that few Now how your months has have. that relative that ad And impacted you if brands just on across deal the be how there it's your that expectations? has integration a would to the click closed, sales been you technology helpful. That been double since motion can really

Vivek Shah

most really for ahead you the Spiceworks. Thank going the market we're and Lifehacker ZDNet, We're certainly progress, asking pleased as trusted to We're with PCMag, and our plan. question. in the Yes. on or group, CNET tech, of Mashable, brands CNET,

roster pretty it's compelling So for We've sales both of combined go-to-market and teams efficiency and lineup brands. effectiveness. a the in marketing

and to I'll services with for go that it's Association an CES And across brands to We have the that our position our at to more this, independent we that their example excited editorial where to that each what the in made tell in Group, found a So allows shared the as brand. scale year. opportunities were our best industry. best great of they we on think selections CES CNET for makes with us marketers was right, example some categories teams you that this editorial That own best and editorial marketplace. but products category. leverage on within real each the CNET of and Consumer see a a the real puts voices the single Every can call CES, collaboration Technology year, team they publication supports give to cooperation. around each you CES I that see work importantly, of of impact areas have brands looks and done market editorial this of group our important are do year, something across way distinct right? This various within display. the We editorial across maintain

have we already we had and planned. the savings From synergies view, a cost point realized of

and group. So Gutman, terrific that's CNET got got leader She's We've a the in good. great talented a team. overseeing Kate very

X to pretty to we're as achieve you quickly. of going XX in know, Xx I'd overall, schedule months effective kind to over post-acquisition, is try think which be of this XX our So that delivering say we're to target ahead I EBITDA, within there purchase to price

important so it very about And really of position strengthen in good And strong our does verticals. does in feel the very we it acquisition. a put us one --

Operator

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

Bret Richter

interest provide and company. thank and in that were the call. the the appreciate information our we Paul. call on all importantly, disclosures, you reportable commentary joining We you, our to incremental Thank segments, today's And you able new for hope continued

we'll in to of forward months. conferences be events future. speaking see coming the look and As and in some participating with in to usual, various you Hope you the there, we

Operator

Thank you. This does conclude conference. today's

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

Ziff Davis (ZD) 25 Feb 252024 Q4 Earnings call transcript