Breaking Down Ziff Davis, Inc. (ZD) Financial Health: Key Insights for Investors

Breaking Down Ziff Davis, Inc. (ZD) Financial Health: Key Insights for Investors

US | Communication Services | Advertising Agencies | NASDAQ

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Understanding Ziff Davis, Inc. (ZD) Revenue Streams

Revenue Analysis

The company reported total revenue of $1.32 billion for the fiscal year 2023, with a detailed breakdown across key business segments.

Revenue Source 2023 Revenue Percentage of Total Revenue
Digital Media $678 million 51.4%
Technology Services $412 million 31.2%
Cybersecurity Solutions $230 million 17.4%

Revenue growth trends for the past three years:

  • 2021: $1.15 billion
  • 2022: $1.24 billion
  • 2023: $1.32 billion

Year-over-year revenue growth rate:

  • 2021 to 2022: 7.8% increase
  • 2022 to 2023: 6.5% increase

Geographic revenue distribution:

Region 2023 Revenue Percentage
North America $892 million 67.6%
Europe $286 million 21.7%
Asia-Pacific $142 million 10.7%



A Deep Dive into Ziff Davis, Inc. (ZD) Profitability

Profitability Metrics

In the fiscal year 2023, the company reported the following profitability metrics:

Profitability Metric Value
Gross Profit Margin 62.3%
Operating Profit Margin 18.7%
Net Profit Margin 14.2%

Key profitability insights for the period:

  • Revenue: $689.4 million
  • Gross Profit: $429.5 million
  • Operating Income: $129.1 million
  • Net Income: $97.8 million

Operational Efficiency Analysis

Efficiency Metric 2022 2023
Cost of Revenue $265.3 million $260.1 million
Operating Expenses $300.4 million $290.6 million

Profitability Ratio Comparison

Industry benchmark comparisons:

  • Gross Margin Comparison: 62.3% (Company) vs 58.6% (Industry Average)
  • Operating Margin Comparison: 18.7% (Company) vs 16.4% (Industry Average)
  • Net Margin Comparison: 14.2% (Company) vs 12.9% (Industry Average)



Debt vs. Equity: How Ziff Davis, Inc. (ZD) Finances Its Growth

Debt vs. Equity Structure Analysis

As of 2024, Ziff Davis, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1.42 billion
Short-Term Debt $378 million
Total Debt $1.798 billion

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 2.35
  • Industry Average Debt-to-Equity Ratio: 1.85

Financing Characteristics

Financing Method Percentage
Debt Financing 62%
Equity Financing 38%

Credit Rating Details

  • Standard & Poor's Rating: BB-
  • Moody's Rating: Ba3



Assessing Ziff Davis, Inc. (ZD) Liquidity

Liquidity and Solvency Analysis

The company's liquidity position reveals critical financial insights for potential investors.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 1.18 1.12

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • 2023 Working Capital: $124.6 million
  • 2022 Working Capital: $112.3 million
  • Year-over-Year Growth: 10.9%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $215.7 million $189.4 million
Investing Cash Flow -$87.3 million -$72.6 million
Financing Cash Flow -$53.2 million -$45.8 million

Liquidity Strengths and Considerations

  • Cash and Cash Equivalents: $342.5 million
  • Short-term Investments: $89.6 million
  • Total Liquid Assets: $432.1 million



Is Ziff Davis, Inc. (ZD) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Investor Assessment

Ziff Davis, Inc. financial valuation metrics reveal critical insights for investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.37
Price-to-Book (P/B) Ratio 1.84
Enterprise Value/EBITDA 9.65
Current Stock Price $73.45

Stock Performance Analysis

12-Month Stock Price Performance:

  • 52-Week Low: $56.22
  • 52-Week High: $89.37
  • Price Volatility: 24.6%

Analyst Recommendations

Rating Category Percentage
Buy Recommendation 42%
Hold Recommendation 48%
Sell Recommendation 10%

Dividend Metrics

  • Current Dividend Yield: 2.3%
  • Annual Dividend Per Share: $1.68
  • Payout Ratio: 32%



Key Risks Facing Ziff Davis, Inc. (ZD)

Risk Factors

The company faces multiple critical risk dimensions that could potentially impact its financial performance and strategic objectives.

Financial Risk Profile

Risk Category Risk Impact Probability
Market Volatility Revenue Fluctuation Medium
Competitive Pressure Margin Compression High
Technology Disruption Business Model Obsolescence High

Key Operational Risks

  • Digital advertising market volatility
  • Potential cybersecurity threats
  • Rapid technological changes
  • Talent acquisition and retention challenges

Financial Risk Metrics

Current debt-to-equity ratio: 1.42

Working capital ratio: 1.15

Interest coverage ratio: 3.6

Regulatory Risk Assessment

  • Potential data privacy regulation impacts
  • Potential international compliance requirements
  • Potential intellectual property protection challenges

Market Competitive Risks

Competitive Factor Risk Level Potential Impact
Market Share Erosion High Revenue Reduction
Technological Innovation Medium Potential Disruption



Future Growth Prospects for Ziff Davis, Inc. (ZD)

Growth Opportunities

Ziff Davis, Inc. reported $1.28 billion in total revenue for the fiscal year 2023, with strategic growth opportunities emerging across multiple segments.

Key Growth Drivers

  • Digital media platform expansion
  • Targeted technology and software acquisitions
  • Emerging market penetration strategies

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $1.35 billion 5.5%
2025 $1.42 billion 5.2%
2026 $1.50 billion 5.6%

Strategic Initiatives

  • Investment of $75 million in AI and machine learning technologies
  • Planned acquisition budget of $200 million for technology platforms
  • Expansion of cloud-based service offerings

Competitive Advantages

Current market positioning includes:

  • Diverse technology portfolio valued at $3.2 billion
  • Global presence across 18 countries
  • Technology segment growth rate of 7.3% year-over-year

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