Ziff Davis (ZD) FY2023 results: revenue $1.4 billion, down 1.9% on the year

Ziff Davis, Inc. (ZD) reported revenue of $1.4 billion for fiscal 2023, the year ended 31 December 2023, down 1.9% on the year before. Net income was $42 million, down 34.9%, and diluted earnings per share $0.89. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2024.

Revenue

$1.4 billion

-1.9% on the year

FY2016FY2023

Operating margin

9.7%

14.3% a year earlier

FY2016FY2023

Net income

$42 million

-34.9% on the year

FY2016FY2023

Diluted EPS

$0.89

-34.6% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	1,364	1,391	1,417	-1.9%
Cost of revenue	186	185	188	+0.6%
Gross profit	1,178	1,206	1,229	-2.3%
Gross margin	86.4%	86.7%	86.7%
Research and development	68.9	74.1	78.9	-7.1%
Operating income	133	199	167	-33.3%
Operating margin	9.7%	14.3%	11.8%
Interest expense	41.6	37.1	79.6	+12.1%
Pre-tax income	75.0	131	351	-42.8%
Income tax	24.1	58.0	-14.2	-58.3%
Effective tax rate	32.2%	44.2%	-4.0%
Net income	41.5	63.8	497	-34.9%
Net margin	3.0%	4.6%	35.1%
Diluted EPS	$0.89	$1.36	$10.37	-34.6%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	320	336	517	-4.9%
Capital expenditure	109	106	114	+2.4%
Free cash flow	211	230	403	-8.3%
Free cash flow margin	15.5%	16.6%	28.4%
Cash from investing	-127	-221	59.1
Cash from financing	-115	-141	-113
Depreciation and amortisation	237	233	258	+1.5%
Share-based compensation	31.9	26.6	25.2	+20.0%
Buybacks	109	78.3	78.3	+38.6%
Dividends paid	n/a	n/a	0.0
Dividend per share	n/a	n/a	$0.00
Diluted shares, weighted	46m	47m	48m	-1.2%
Shares outstanding at period end	46m	47m	47m	-2.5%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,893	1,893	1,968	+0.0%
Debt	1,001	999	1,091	+0.2%
Operating lease liabilities	16.6	34.0	53.7	-51.1%
Other liabilities	560	608	658	-7.8%
Total liabilities and equity	3,471	3,533	3,770	-1.8%
Fixed assets	188	178	161	+5.6%
Goodwill	1,546	1,591	1,531	-2.9%
Intangible assets	325	463	573	-29.7%
Investments	168	186	352	-9.8%
Cash and equivalents	738	653	695	+13.0%
Receivables	338	305	316	+10.8%
Other assets	168	157	142	+7.1%
Total assets	3,471	3,533	3,770	-1.8%

10-K for the year ended 31 December 2023, filed 26 February 2024: the filing.