FIRST QUARTER 2024 SUPPLEMENTAL MATERIALS
May 8, 2024
©2024 Ziff Davis. All rights reserved. | www.ziffdavis.com |
Reconciliation of GAAP to Adjusted EBITDA
$ in 000's | ||||||
Ziff Davis | Three months ended March 31, | |||||
2023 | 2024 | |||||
Net (loss) income | $ | (7,627) | $ | 10,627 | ||
Interest expense, net | 4,480 | 1,769 | ||||
Loss on sale of businesses | - | 3,780 | ||||
Unrealized loss on short-term investments held at the reporting date, net | 20,345 | 10,705 | ||||
Gain on investments, net | (357) | - | ||||
Other loss, net | 908 | 104 | ||||
Income tax (benefit) expense | (616) | 8,231 | ||||
Loss from equity method investments, net | 9,182 | 645 | ||||
Depreciation and amortization | 54,623 | 48,453 | ||||
Share-based compensation | 8,402 | 8,872 | ||||
Acquisition, integration, and other costs | 3,525 | 6,266 | ||||
Disposal related costs | 149 | 496 | ||||
Lease asset impairments and other charges | 1,319 | 803 | ||||
Adjusted EBITDA (1) | $ | 94,333 | $ | 100,751 |
1. Adjusted EBITDA is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain items including: Interest expense, net; (Gain) loss on debt extinguishment, net; (Gain) loss on sale | |
of business; Unrealized (gain) loss on short-term investments held at the reporting date, net; (Gain) loss on investments, net; Other (income) loss, net; Income tax (benefit) expense; (Income) loss from equity | |
method investments, net; Depreciation and amortization; Share-based compensation; Acquisition, integration, and other costs; Disposal related costs; Lease asset impairments and other charges; and Goodwill | 2 |
impairment on business. |
Reconciliation of GAAP to Non-GAAP Financial Measures
Unrealized (gain) loss | (Income) loss | Acquisition, | Disposal | Lease asset | Adjusted | ||||||||
GAAP | Interest, | (Gain) loss on | on short-term | from equity | Share-based | integration, | impairments | ||||||
Amortization | related | non-GAAP | |||||||||||
amount | net | sale of business | investments held at | method | compensation | and other | and other | ||||||
costs | amount | ||||||||||||
Q1 2024 | the reporting date, net | investments, net | costs | charges | |||||||||
$ in 000's | |||||||||||||
Direct costs | $(47,067) | $- | $- | $- | $- | $105 | $61 | $170 | $- | $- | $(46,731) | ||
Sales and marketing | $(117,000) | - | - | - | - | - | 758 | 541 | - | - | $(115,701) | ||
Research, development, and engineering | $(17,774) | - | - | - | - | - | 1,090 | 223 | 40 | - | $(16,421) | ||
General, administrative, and other related costs | $(96,783) | - | - | - | - | 26,319 | 6,963 | 5,332 | 456 | 803 | $(56,910) | ||
Interest expense, net | $(1,769) | (7) | - | - | - | - | - | - | - | - | $(1,776) | ||
Loss on sale of business | $(3,780) | - | 3,780 | - | - | - | - | - | - | - | $- | ||
Unrealized loss on short-term investments held at period end, net | $(10,705) | - | - | 10,705 | - | - | - | - | - | - | $- | ||
Income tax expense (1) | $(8,231) | 2 | - | (1,037) | - | (6,339) | (1,086) | (1,395) | (124) | (160) | $(18,370) | ||
Loss from equity method investment, net | $(645) | - | - | - | 645 | - | - | - | - | - | - | ||
Total non-GAAP Adjustments | $(5) | $3,780 | $9,668 | $645 | $20,085 | $7,786 | $4,871 | $372 | $643 | ||||
Unrealized (gain) loss | (Income) loss from | Acquisition, | Disposal | Lease asset | Adjusted | ||||||||
GAAP | Interest, | on short-term | (Gain) loss on | Share-based | integration, | impairments | |||||||
equity method | Amortization | related | non-GAAP | ||||||||||
amount | net | investments held at | investments, net | compensation | and other | and other | |||||||
investments, net | costs | amount | |||||||||||
Q1 2023 | the reporting date, net | costs | charges | ||||||||||
$ in 000's | |||||||||||||
Direct costs | $(45,730) | $- | $- | $- | $- | $196 | $76 | $85 | $- | $- | $(45,373) | ||
Sales and marketing | $(115,920) | - | - | - | - | - | 924 | 1,419 | - | - | $(113,577) | ||
Research, development, and engineering | $(17,914) | - | - | - | - | - | 783 | 175 | - | - | $(16,956) | ||
General, administrative, and other related costs | $(101,263) | - | - | - | - | 33,319 | 6,619 | 1,846 | 149 | 1,319 | $(58,011) | ||
Interest expense, net | $(4,480) | 74 | - | - | - | - | - | - | - | - | $(4,406) | ||
Gain on investment, net | $357 | - | - | (357) | - | - | - | - | - | - | $- | ||
Unrealized loss on short-term investments held at period end, net | $(20,345) | - | 20,345 | - | - | - | - | - | - | - | $- | ||
Income tax benefit (expense) (1) | $616 | (18) | (5,080) | 89 | - | (8,893) | (1,585) | (948) | (37) | (329) | $(16,185) | ||
Loss from equity method investment, net | $(9,182) | - | - | - | 9,182 | - | - | - | - | - | - | ||
Total non-GAAP Adjustments | $56 | $15,265 | $(268) | $9,182 | $24,622 | $6,817 | $2,577 | $112 | $990 | ||||
1. Adjusted effective tax rate is calculated based upon the GAAP effective tax rate with adjustments for the tax applicable to non-GAAP adjustments to Net income (loss), generally based upon the effective marginal tax rate
of each adjustment: | ||
a) | Adjusted effective tax rate was approximately 23.9% for the three months ended March 31, 2024. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $18,370 and the | |
denominator is $76,841, which equals adjusted net income of $58,472 plus adjusted income tax expense. | ||
b) | Adjusted effective tax rate was approximately 23.8% for the three months ended March 31, 2023. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $16,185 and the | 3 |
denominator is $67,911, which equals adjusted net income of $51,726 plus adjusted income tax expense. |
Reconciliation of GAAP to Free Cash Flow (1)
$ in 000's
Ziff Davis | Three months ended March 31, | |||||
2023 | 2024 | |||||
Net cash provided by operating activities | $ | 115,307 | $ | 75,558 | ||
Less: Purchases of property and equipment | (30,017) | (28,129) | ||||
Free cash flow (1) | $ | 85,290 | $ | 47,429 |
1. Free cash flow is defined as Net cash provided by operating activities, less purchases of property and equipment, plus changes in contingent consideration (if any). | 4 |
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Ziff Davis Inc. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 03:56:05 UTC.