Companies /Communication Services

Ziff Davis Inc

NASDAQ: ZD Advertising Agencies
$56.03
▼ $0.28 (−0.51%) today
Markets open · 2:25pm ET

Q1 2025 Earnings

Reported May 8, 2025, 2:41pm ET · SEC source
$1.14
Miss −8.55%
EPS · est. $1.25
$328.6M
Beat +1.82%
Revenue · est. $322.8M
−0.9%
Trailing market
ZD vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0May 8May 9report 2:41pm ETearnings−0.8%−5.3%
−6%−3%0May 8May 9earnings−0.8%−5.3%
ZD −5.3%S&P 500 −0.8%
−6%−3%0May 8May 9report 2:41pm ETearnings−0.8%−5.3%
−6%−3%0May 8May 9earnings−0.8%−5.3%
ZD −5.3%NASDAQ −0.8%
−4%0+4%May 7May 16report 2:41pm ETearnings+4.6%−0.1%
−4%0+4%May 7May 16earnings+4.6%−0.1%
ZD −0.1%S&P 500 +4.6%
−4%0+4%May 7May 16report 2:41pm ETearnings+6.1%−0.1%
−4%0+4%May 7May 16earnings+6.1%−0.1%
ZD −0.1%NASDAQ +6.1%
+2.37%
Day of report
−4.54%
Next session
+1.73%
One week
+5.81%
30 days

S&P 500 over the same 30 days: +6.73%.

Did ZD Beat Earnings? Q1 2025 Results

Ziff Davis opened 2025 on a stronger-than-expected footing, with CEO Vivek Shah acknowledging the quarter exceeded internal targets even as the earnings picture remained nuanced. The digital media company posted Q1 2025 revenue of $328.64 million, up 4.5% year-over-year, powered by a 12.3% surge in advertising and performance marketing revenues to $175.00 million — a standout in an environment where <a href="https://247wallst.com/investing/2026/02/26/one-quarter-ago-zoom-beat-by-148-this-quarter-it-missed/">revenue consistency has been elusive</a> across tech-adjacent names. Adjusted diluted EPS slipped 10.2% to $1.14 from $1.27 a year ago, reflecting margin pressure as Adjusted EBITDA edged down 0.6% to $100.18 million, with margins contracting to 30.5%. The Technology & Shopping segment led growth at 17.9%, while Cybersecurity & Martech remained a drag, declining 10.8% to $67.31 million. GAAP net income more than doubled to $24.24 million, aided by the absence of prior-year investment losses. Ziff Davis reaffirmed full-year 2025 guidance, targeting revenue of $1.44 billion to $1.50 billion and Adjusted diluted EPS of $6.64 to $7.28, implying roughly 5% midpoint growth across key metrics.

Key Takeaways
  • Advertising and performance marketing revenue grew 12.3% YoY to $175M
  • Technology & Shopping segment led growth at 17.9% YoY
  • Health & Wellness segment revenue grew 7.3% with improved advertising retention rate of 94.9%
  • GAAP net income benefited from absence of prior-year investment losses and gains from equity method investments
  • Subscription and licensing revenue declined 2.0% YoY
  • Organic revenue declined 3% while total revenue grew 4.5%, indicating acquisition contribution

“We are pleased with our overall first quarter performance, which surpassed our internal targets. The combination of accelerating revenue growth, a healthy M&A cadence, and our active share buyback program has us optimistic about our prospects for the balance of the year.”

Ziff Davis CEO, on the earnings call

Forward Guidance & Outlook

Ziff Davis reaffirmed its fiscal year 2025 guidance: Revenues of $1,442M to $1,502M (midpoint ~5.0% YoY growth), Adjusted EBITDA of $505M to $542M (midpoint ~6.0% YoY growth), and Adjusted diluted EPS of $6.64 to $7.28 (midpoint ~5.1% YoY growth). The anticipated adjusted effective tax rate for 2025 is between 23.25% and 25.25%.

ZD YoY Financials

Revenue$328.6M
Operating Income$35.1M
Net Income$24.2M

ZD Revenue by Segment

Health & Wellness$85.8M+7.3%
Technology & Shopping$81.7M+17.9%
Cybersecurity & Martech$67.3M−10.8%
Connectivity$55.8M+5.0%
Gaming & Entertainment$38.0M+3.8%

Figures from SEC filings and company reports. Not investment advice.