Ziff Davis Reports 4.5% Revenue Increase to $328.6 Million in Q1 2025

ZIFF DAVIS, INC. reported a revenue increase of 4.5% for the first quarter of 2025, totaling $328.6 million compared to $314.5 million in the same period last year. The company's net income rose significantly to $24.2 million, or $0.57 per share, up from $10.6 million, or $0.23 per share, in the prior year. This growth in profitability was attributed to a $19.2 million increase in advertising and performance marketing revenue, particularly from the Technology & Shopping and Health & Wellness segments, despite a decline in subscription and licensing revenues.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Operating costs increased to $293.5 million from $278.6 million, driven by higher sales and marketing expenses, which rose by 9.1% to $127.7 million. Additionally, depreciation and amortization expenses increased by 15.2% to $55.8 million, reflecting investments in capitalized software and new intangible assets from acquisitions. The overall operating income slightly decreased to $35.1 million from $35.9 million, indicating a tighter margin amid rising costs.

Strategically, Ziff Davis completed two immaterial acquisitions during the quarter, totaling $41.3 million, which included $12.7 million in goodwill. These acquisitions are expected to enhance the company's service offerings and customer base. The company also continued its stock repurchase program, buying back 750,000 shares at a cost of approximately $30.9 million, contributing to a cumulative repurchase of 9.5 million shares since the program's inception.

Operationally, Ziff Davis reported a customer count of 573,575 in its Technology & Shopping segment, with a quarterly revenue per customer of $138,701, reflecting a year-over-year increase. The Health & Wellness segment also saw growth, with revenues reaching $85.8 million, up 7.3% from the previous year. However, the Cybersecurity & Martech segment faced challenges, with revenues declining by 10.8% to $67.3 million, primarily due to decreased subscription and licensing revenue.

Looking ahead, Ziff Davis remains focused on expanding its market presence and enhancing its service offerings. The company anticipates that ongoing investments in technology and strategic acquisitions will drive future growth. However, management acknowledged potential risks related to macroeconomic conditions, including inflation and interest rates, which could impact customer acquisition and retention. The company is committed to maintaining its financial position and operational efficiency to navigate these challenges effectively.