Ziff Davis, Inc. Q2 FY2025 earnings call

• Q2 results exceeded expectations with revenues growing nearly 10% and adjusted EBITDA growing nearly 12% y-o-y, marking the strongest revenue growth since 2021 and fourth consecutive quarter of revenue growth. • Successfully completed 5 tuck-in acquisitions in the first half of the year. • 4 out of 5 reportable segments grew revenues in Q2; Cybersecurity & Martech poised to return to growth in Q3. • Leveraged AI across segments: e.g., VIPRE Integrated Email Security, AI customer service chatbot at RetailMeNot, AI-powered features in Lose It! app. • Health & Wellness had blockbuster quarter with pharma commercialization and consumer offerings strong; Lose It! expanded direct subscriptions. • Connectivity had double-digit organic growth, Rule of 60 business with strong demand for products/services. • Cybersecurity & Martech saw momentum in VPN business, launched VIPRE Integrated Email Security.

Tech & Shopping: Revenues grew by over 11%, adjusted EBITDA growth over 5%. Gaming & Entertainment: Revenues grew nearly 8%, adjusted EBITDA growth almost 24%. Health & Wellness: Revenues up nearly 16%, adjusted EBITDA up 11%. Connectivity: Revenues up over 14%, adjusted EBITDA up over 12%. Cybersecurity & Martech: Revenues declined less than 1%, adjusted EBITDA grew over 5%.

• Reaffirmed fiscal year 2025 guidance range presented in February 2025, expecting at least mid-single-digit revenue growth for Q3 and Q4 2025, with Q4 potentially stronger. • Expect adjusted EBITDA margins similar to 2024 in third and fourth quarters. • Health & Wellness and Connectivity expected to be the largest contributors to second half growth. • Fourth quarter typically being the seasonally largest revenue quarter.

• Forward-looking statements involve risks and uncertainties where actual results may differ from anticipated; risks disclosed in SEC filings including 10-K, 10-Q, proxy statements, and 8-K filings. • Foreign exchange rate changes impacted Q2 2025 EPS by approximately $0.10 per diluted share.

Q: With the increased segment level disclosures, what are you guys hoping to communicate to the market regarding intrinsic value versus current public market valuation?

A: Hoping investors assess each of the 5 segments, noting differing growth and margin profiles. Highlights include pharma commercialization/consumer health platform growing double digits, data-as-a-service business with AI tailwinds growing double digits, gaming platform at center of fastest-growing entertainment category, software unit with Cybersecurity growth and organic growth potential, and intent-driven Tech & Shopping portfolio with strong EBITDA growth.

Q: Update on trends in the ad market and long-term growth framework?

A: Ad business grew over 15%, broken down by category: Health very strong, Shopping had Offers brand in managed decline, Tech strong with CNET and consumer/B2B improving, Gaming mid-teens growth. Long-term, expect double-digit total revenue growth, roughly half organic and half inorganic, aiming for mid-30s adjusted EBITDA margins.

Q: Incremental EBITDA margin discussion?

A: Some variability due to one-time, acquisition, investment, or campaign dynamics. Important to view on multiple quarters and overall mid-30s margin expectation. Tech & Shopping had PC game investment business sunsetting as a drag.

Q: Update on AI overviews, search, LLMs, and moment of influence product?

A: 35% of revenues are ads on O&O web traffic, ~40% from search. Continuing lawsuit against OpenAI to protect IP, blocking known AI bots at CDN level. Moment of influence product is proprietary AI-based data management platform, rolled out in verticals like Everyday Health Group with [Halo] showing traction, using first-party privacy-protected data.

Q: Trends in Health & Wellness advertising participation and Connectivity?

A: Health & Wellness seeing growth in advertiser count due to expansion into related/adjacent categories, demographically aligned with longevity focus, Lose It! accepting ads for free customers. Connectivity had mix of high and low price point customers, Speedtest Intelligence and RootMetrics driving growth, Ekahau expected to grow with WiFi 7 router refresh tailwind in 2026.