Delaware |
0-25965 |
47-1053457 |
|||||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | ZD | The Nasdaq Stock Market LLC |
Exhibit Number | Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Ziff Davis, Inc.
(Registrant)
|
|||||||||||
Date: | February 24, 2025 | By: | /s/ Jeremy Rossen | ||||||||
Jeremy Rossen Executive Vice President, General Counsel and Secretary |
(Unaudited) |
Three months ended
December 31,
|
% Change |
Years ended
December 31,
|
% Change | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Technology & Shopping | $132.9 | $105.2 | 26.3% | $361.9 | $330.6 | 9.5% | ||||||||||||||
Gaming & Entertainment | $50.9 | $49.2 | 3.5% | $180.3 | $168.8 | 6.8% | ||||||||||||||
Health & Wellness | $105.7 | $106.5 | (0.7)% | $362.4 | $361.9 | 0.1% | ||||||||||||||
Connectivity | $54.3 | $57.0 | (4.9)% | $213.6 | $211.5 | 1.0% | ||||||||||||||
Cybersecurity and Martech | $69.0 | $72.0 | (4.0)% | $283.5 | $291.2 | (2.6)% | ||||||||||||||
Total revenues (3) |
$412.8 | $389.9 | 5.9% | $1,401.7 | $1,364.0 | 2.8% | ||||||||||||||
Income from operations |
$78.5 | $80.7 | (2.7)% | $113.6 | $132.6 | (14.3)% | ||||||||||||||
Operating income margin |
19.0% | 20.7% | (1.7)% | 8.1% | 9.7% | (1.6)% | ||||||||||||||
Net income (1) |
$64.1 | $63.4 | 1.0% | $63.0 | $41.5 | 51.9% | ||||||||||||||
Net income per diluted share (1) |
$1.43 | $1.29 | 10.9% | $1.42 | $0.89 | 59.6% | ||||||||||||||
Adjusted EBITDA (2) |
$171.8 | $167.6 | 2.5% | $493.5 | $482.3 | 2.3% | ||||||||||||||
Adjusted EBITDA margin (2) |
41.6% | 43.0% | (1.4)% | 35.2% | 35.4% | (0.2)% | ||||||||||||||
Adjusted net income (1)(2) |
$110.2 | $107.0 | 3.0% | $294.5 | $287.4 | 2.5% | ||||||||||||||
Adjusted diluted EPS (1)(2) |
$2.58 | $2.33 | 10.7% | $6.62 | $6.19 | 6.9% | ||||||||||||||
Net cash provided by operating activities |
$158.2 | $92.1 | 71.8% | $390.3 | $320.0 | 22.0% | ||||||||||||||
Free cash flow (2) |
$131.1 | $65.9 | 99.0% | $283.7 | $211.2 | 34.3% |
(1) | GAAP effective tax rates were approximately 18.3% and 17.0% for the three months ended December 31, 2024 and 2023, respectively, and 44.4% and 32.2% for the year ended December 31, 2024 and 2023, respectively. Adjusted effective tax rates were approximately 22.8% and 22.5% for the three months ended December 31, 2024 and 2023, respectively, and 23.5% and 23.3% for the year ended December 31, 2024 and 2023, respectively. |
|||||||
(2) | For definitions of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures refer to section “Non-GAAP Financial Measures” further in this release. |
|||||||
(3) | The revenues associated with each of the businesses may not foot precisely since each is presented independently. |
2024 Actual |
2025 Range of Estimates |
Growth |
|||||||||||||||||||||||||||
(unaudited) | Low | High | Low | High | |||||||||||||||||||||||||
Revenue | $ | 1,402 | $ | 1,442 | $ | 1,502 | 2.9 | % | 7.2 | % | |||||||||||||||||||
Adjusted EBITDA | $ | 494 | $ | 505 | $ | 542 | 2.3 | % | 9.8 | % | |||||||||||||||||||
Adjusted diluted EPS* | $ | 6.62 | $ | 6.64 | $ | 7.28 | 0.3 | % | 10.0 | % |
December 31, | |||||||||||
2024 | 2023 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 505,880 | $ | 737,612 | |||||||
Short-term investments | — | 27,109 | |||||||||
Accounts receivable, net of allowances of $8,148 and $6,871, respectively |
660,223 | 337,703 | |||||||||
Prepaid expenses and other current assets | 105,966 | 88,570 | |||||||||
Total current assets | 1,272,069 | 1,190,994 | |||||||||
Long-term investments | 158,187 | 140,906 | |||||||||
Property and equipment, net of accumulated depreciation of $361,710 and $327,015, respectively |
197,216 | 188,169 | |||||||||
Intangible assets, net | 425,749 | 325,406 | |||||||||
Goodwill | 1,580,258 | 1,546,065 | |||||||||
Deferred income taxes | 7,487 | 8,731 | |||||||||
Other assets | 63,368 | 70,751 | |||||||||
TOTAL ASSETS | $ | 3,704,334 | $ | 3,471,022 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accounts payable and accrued expenses | $ | 670,769 | $ | 216,936 | |||||||
Income taxes payable, current | 19,715 | 14,458 | |||||||||
Deferred revenue, current | 199,664 | 184,549 | |||||||||
Other current liabilities | 9,499 | 15,890 | |||||||||
Total current liabilities | 899,647 | 431,833 | |||||||||
Long-term debt | 864,282 | 1,001,312 | |||||||||
Deferred revenue, noncurrent | 5,504 | 8,169 | |||||||||
Income taxes payable, noncurrent | — | 8,486 | |||||||||
Liability for uncertain tax positions | 30,296 | 36,055 | |||||||||
Deferred income taxes | 46,018 | 45,503 | |||||||||
Other noncurrent liabilities | 47,705 | 46,666 | |||||||||
TOTAL LIABILITIES | 1,893,452 | 1,578,024 | |||||||||
Common stock | 428 | 461 | |||||||||
Additional paid-in capital | 491,891 | 472,201 | |||||||||
Retained earnings | 1,401,034 | 1,491,956 | |||||||||
Accumulated other comprehensive loss | (82,471) | (71,620) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 1,810,882 | 1,892,998 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,704,334 | $ | 3,471,022 |
Three months ended December 31, |
Years ended
December 31,
|
||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Total revenues | $ | 412,823 | $ | 389,885 | $ | 1,401,688 | $ | 1,364,028 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Direct costs | 53,242 | 45,070 | 200,323 | 185,650 | |||||||||||||||||||
Sales and marketing | 150,510 | 126,449 | 519,694 | 487,365 | |||||||||||||||||||
Research, development, and engineering | 17,549 | 15,532 | 67,373 | 68,860 | |||||||||||||||||||
General, administrative, and other related costs | 53,029 | 52,483 | 203,461 | 195,726 | |||||||||||||||||||
Depreciation and amortization | 59,971 | 69,631 | 211,916 | 236,966 | |||||||||||||||||||
Goodwill impairment | — | — | 85,273 | 56,850 | |||||||||||||||||||
Total operating costs and expenses | 334,301 | 309,165 | 1,288,040 | 1,231,417 | |||||||||||||||||||
Income from operations | 78,522 | 80,720 | 113,648 | 132,611 | |||||||||||||||||||
Interest expense, net | (6,391) | (2,251) | (13,988) | (20,031) | |||||||||||||||||||
Loss on sale of businesses | — | — | (3,780) | — | |||||||||||||||||||
Income (loss) on investments, net | — | 1,065 | (7,654) | (28,138) | |||||||||||||||||||
Other income (loss), net | 2,438 | (3,486) | 4,968 | (9,468) | |||||||||||||||||||
Income before income tax expense and income (loss) from equity method investment |
74,569 | 76,048 | 93,194 | 74,974 | |||||||||||||||||||
Income tax expense | (13,610) | (12,962) | (41,370) | (24,142) | |||||||||||||||||||
Income (loss) from equity method investment, net of tax | 3,128 | 336 | 11,223 | (9,329) | |||||||||||||||||||
Net income | $ | 64,087 | $ | 63,422 | $ | 63,047 | $ | 41,503 | |||||||||||||||
Net income per common share: |
|||||||||||||||||||||||
Basic | $ | 1.51 | $ | 1.39 | $ | 1.42 | $ | 0.89 | |||||||||||||||
Diluted | $ | 1.43 | $ | 1.29 | $ | 1.42 | $ | 0.89 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 42,577,188 | 45,772,689 | 44,457,071 | 46,400,941 | |||||||||||||||||||
Diluted | 46,690,090 | 50,985,086 | 44,519,693 | 46,464,261 |
Years ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 63,047 | $ | 41,503 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 211,916 | 236,966 | |||||||||
Non-cash operating lease costs | 10,923 | 11,141 | |||||||||
Share-based compensation | 40,915 | 31,920 | |||||||||
Provision for credit losses on accounts receivable |
2,898 | 2,809 | |||||||||
Deferred income taxes, net | (18,822) | (30,017) | |||||||||
Loss on sale of businesses | 3,780 | — | |||||||||
Goodwill impairment | 85,273 | 56,850 | |||||||||
Changes in fair value of contingent consideration | — | (200) | |||||||||
(Income) loss from equity method investments | (11,223) | 9,329 | |||||||||
Loss on investment, net | 7,654 | 28,138 | |||||||||
Other | 3,601 | 5,159 | |||||||||
Decrease (increase) in: | |||||||||||
Accounts receivable | (153,121) | (35,371) | |||||||||
Prepaid expenses and other current assets | (17,153) | (8,700) | |||||||||
Other assets | 11,367 | (5,574) | |||||||||
Increase (decrease) in: | |||||||||||
Accounts payable | 171,280 | 9,419 | |||||||||
Deferred revenue | 5,043 | (6,802) | |||||||||
Accrued liabilities and other current liabilities | (27,063) | (26,608) | |||||||||
Net cash provided by operating activities |
390,315 | 319,962 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (106,635) | (108,729) | |||||||||
Acquisition of businesses, net of cash received | (217,570) | (9,492) | |||||||||
Purchase of equity investments | — | (11,858) | |||||||||
Proceeds from sale of equity investments | 19,455 | 3,174 | |||||||||
Proceeds from sale of businesses, net of cash divested | 7,860 | — | |||||||||
Other | (565) | (503) | |||||||||
Net cash used in investing activities | (297,455) | (127,408) | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt | (134,989) | — | |||||||||
Debt extinguishment costs | (277) | — | |||||||||
Repurchase of common stock | (185,181) | (108,527) | |||||||||
Issuance of common stock under employee stock purchase plan | 8,371 | 8,727 | |||||||||
Deferred payments for acquisitions | (7,842) | (15,241) | |||||||||
Other | (1,076) | 250 | |||||||||
Net cash used in financing activities |
(320,994) | (114,791) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (3,598) | 7,056 | |||||||||
Net change in cash and cash equivalents | (231,732) | 84,819 | |||||||||
Cash and cash equivalents at beginning of year | 737,612 | 652,793 | |||||||||
Cash and cash equivalents at end of year | $ | 505,880 | $ | 737,612 |
Three months ended December 31, | Years ended December 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income |
$ | 64,087 | $ | 63,422 | $ | 63,047 | $ | 41,503 | |||||||||||||||
Interest expense, net | 6,391 | 2,251 | 13,988 | 20,031 | |||||||||||||||||||
Loss on sale of businesses |
— | — | 3,780 | — | |||||||||||||||||||
(Income) loss on investment, net | — | (1,065) | 7,654 | 28,138 | |||||||||||||||||||
Other (income) loss, net |
(2,438) | 3,486 | (4,968) | 9,468 | |||||||||||||||||||
Income tax expense |
13,610 | 12,962 | 41,370 | 24,142 | |||||||||||||||||||
(Income) loss from equity method investments, net |
(3,128) | (336) | (11,223) | 7,829 | |||||||||||||||||||
Depreciation and amortization | 59,971 | 69,633 | 211,916 | 236,966 | |||||||||||||||||||
Share-based compensation | 10,282 | 7,527 | 40,915 | 31,920 | |||||||||||||||||||
Acquisition, integration, and other costs |
23,386 | 9,649 | 40,194 | 21,000 | |||||||||||||||||||
Disposal related costs | (350) | 375 | 201 | 2,217 | |||||||||||||||||||
Lease asset impairments and other charges | (9) | (338) | 1,361 | 2,245 | |||||||||||||||||||
Goodwill impairment |
— | — | 85,273 | 56,850 | |||||||||||||||||||
Adjusted EBITDA | $ | 171,802 | $ | 167,566 | $ | 493,508 | $ | 482,309 |
Three months ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Technology & Shopping | Gaming & Entertainment | Health & Wellness | Connectivity | Cybersecurity & Martech | Corporate (1) |
Total | |||||||||||||||||||||||||||||||||||
Revenues | $ | 132,922 | $ | 50,941 | $ | 105,671 | $ | 54,248 | $ | 69,041 | $ | — | $ | 412,823 | |||||||||||||||||||||||||||
Income (loss) from operations |
$ | 22,245 | $ | 20,244 | $ | 27,058 | $ | 17,500 | $ | 9,095 | $ | (17,620) | $ | 78,522 | |||||||||||||||||||||||||||
Depreciation and amortization | 25,313 | 2,869 | 13,849 | 9,397 | 8,505 | 38 | 59,971 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 1,164 | 190 | 1,411 | 638 | 1,097 | 5,782 | 10,282 | ||||||||||||||||||||||||||||||||||
Acquisition, integration, and other costs |
9,710 | 1,323 | 4,509 | 1,987 | 3,587 | 2,270 | 23,386 | ||||||||||||||||||||||||||||||||||
Disposal related costs | — | — | — | — | — | (350) | (350) | ||||||||||||||||||||||||||||||||||
Lease asset impairments and other charges | (179) | 94 | — | — | 76 | — | (9) | ||||||||||||||||||||||||||||||||||
Goodwill impairment |
— | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 58,253 | $ | 24,720 | $ | 46,827 | $ | 29,522 | $ | 22,360 | $ | (9,880) | $ | 171,802 |
Three months ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Technology & Shopping | Gaming & Entertainment | Health & Wellness | Connectivity | Cybersecurity & Martech | Corporate (1) |
Total | |||||||||||||||||||||||||||||||||||
Revenues | $ | 105,222 | $ | 49,230 | $ | 106,449 | $ | 57,038 | $ | 71,946 | $ | — | $ | 389,885 | |||||||||||||||||||||||||||
Income (loss) from operations |
$ | 25,621 | $ | 22,147 | $ | 24,169 | $ | 17,281 | $ | 5,430 | $ | (13,928) | $ | 80,720 | |||||||||||||||||||||||||||
Depreciation and amortization | 19,569 | 2,067 | 18,074 | 11,456 | 18,457 | 10 | 69,633 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 1,001 | 80 | 1,136 | 419 | 932 | 3,959 | 7,527 | ||||||||||||||||||||||||||||||||||
Acquisition, integration, and other costs |
4,114 | 551 | 3,421 | 1,109 | 420 | 34 | 9,649 | ||||||||||||||||||||||||||||||||||
Disposal related costs | 180 | — | — | — | — | 195 | 375 | ||||||||||||||||||||||||||||||||||
Lease asset impairments and other charges | (663) | — | 34 | — | 206 | 85 | (338) | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 49,822 | $ | 24,845 | $ | 46,834 | $ | 30,265 | $ | 25,445 | $ | (9,645) | $ | 167,566 |
Year ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Technology & Shopping | Gaming & Entertainment | Health & Wellness | Connectivity | Cybersecurity & Martech | Corporate (1) |
Total | |||||||||||||||||||||||||||||||||||
Revenues | $ | 361,882 | $ | 180,276 | $ | 362,408 | $ | 213,620 | $ | 283,502 | $ | — | $ | 1,401,688 | |||||||||||||||||||||||||||
(Loss) income from operations |
$ | (71,072) | $ | 54,001 | $ | 67,207 | $ | 79,374 | $ | 54,961 | $ | (70,823) | $ | 113,648 | |||||||||||||||||||||||||||
Depreciation and amortization | 83,424 | 10,733 | 52,766 | 31,882 | 33,025 | 86 | 211,916 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 5,014 | 1,070 | 5,604 | 2,658 | 4,631 | 21,938 | 40,915 | ||||||||||||||||||||||||||||||||||
Acquisition, integration, and other costs |
18,554 | 2,727 | 9,788 | (3,823) | 5,395 | 7,553 | 40,194 | ||||||||||||||||||||||||||||||||||
Disposal related costs | (24) | — | — | — | 20 | 205 | 201 | ||||||||||||||||||||||||||||||||||
Lease asset impairments and other charges | 223 | 93 | 15 | — | 756 | 274 | 1,361 | ||||||||||||||||||||||||||||||||||
Goodwill impairment |
85,273 | — | — | — | — | — | 85,273 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 121,392 | $ | 68,624 | $ | 135,380 | $ | 110,091 | $ | 98,788 | $ | (40,767) | $ | 493,508 |
Year ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Technology & Shopping | Gaming & Entertainment | Health & Wellness | Connectivity | Cybersecurity & Martech | Corporate (1) |
Total | |||||||||||||||||||||||||||||||||||
Revenues | $ | 330,557 | $ | 168,821 | $ | 361,923 | $ | 211,518 | $ | 291,209 | $ | — | $ | 1,364,028 | |||||||||||||||||||||||||||
(Loss) income from operations |
$ | (50,498) | $ | 57,299 | $ | 63,575 | $ | 70,591 | $ | 43,210 | $ | (51,566) | $ | 132,611 | |||||||||||||||||||||||||||
Income from equity method investment, net | — | — | — | — | — | (1,500) | (1,500) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 83,271 | 10,368 | 59,870 | 31,793 | 52,618 | (954) | 236,966 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 4,941 | 758 | 4,843 | 2,014 | 4,186 | 15,178 | 31,920 | ||||||||||||||||||||||||||||||||||
Acquisition, integration, and other costs |
4,452 | 2,441 | 10,004 | 2,820 | 887 | 396 | 21,000 | ||||||||||||||||||||||||||||||||||
Disposal related costs | 633 | — | — | — | 202 | 1,382 | 2,217 | ||||||||||||||||||||||||||||||||||
Lease asset impairments and other charges | 1,019 | — | 510 | — | 471 | 245 | 2,245 | ||||||||||||||||||||||||||||||||||
Goodwill impairment |
56,850 | — | — | — | — | — | 56,850 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 100,668 | $ | 70,866 | $ | 138,802 | $ | 107,218 | $ | 101,574 | $ | (36,819) | $ | 482,309 |
Three months ended December 31, | |||||||||||||||||||||||
2024 | Per diluted share* | 2023 | Per diluted share* | ||||||||||||||||||||
Net income |
$ | 64,087 | $ | 1.43 | $ | 63,422 | $ | 1.29 | |||||||||||||||
Interest, net |
60 | — | (20) | — | |||||||||||||||||||
Loss on sale of business |
— | — | 276 | 0.01 | |||||||||||||||||||
Loss (income) on investments, net | 942 | 0.02 | (775) | (0.02) | |||||||||||||||||||
Income from equity method investments, net |
(3,128) | (0.07) | (336) | (0.01) | |||||||||||||||||||
Amortization | 25,040 | 0.59 | 31,105 | 0.68 | |||||||||||||||||||
Share-based compensation | 5,178 | 0.12 | 6,289 | 0.14 | |||||||||||||||||||
Acquisition, integration, and other costs |
18,265 | 0.43 | 7,011 | 0.15 | |||||||||||||||||||
Disposal related costs | (262) | (0.01) | 238 | 0.01 | |||||||||||||||||||
Lease asset impairments and other charges | 7 | — | (224) | — | |||||||||||||||||||
Dilutive effect of the convertible debt |
— | 0.07 | — | 0.08 | |||||||||||||||||||
Adjusted net income |
$ | 110,189 | $ | 2.58 | $ | 106,986 | $ | 2.33 |
Years ended December 31, | |||||||||||||||||||||||
2024 | Per diluted share* | 2023 | Per diluted share* | ||||||||||||||||||||
Net income |
$ | 63,047 | $ | 1.42 | $ | 41,503 | $ | 0.89 | |||||||||||||||
Interest, net |
132 | — | 5,881 | 0.13 | |||||||||||||||||||
Loss on sale of business |
103 | — | 3,797 | 0.08 | |||||||||||||||||||
Loss on investments, net | 8,019 | 0.18 | 21,103 | 0.45 | |||||||||||||||||||
(Income) loss from equity method investments, net |
(11,223) | (0.25) | 8,204 | 0.18 | |||||||||||||||||||
Amortization | 87,052 | 1.96 | 106,593 | 2.30 | |||||||||||||||||||
Share-based compensation | 31,013 | 0.70 | 27,100 | 0.58 | |||||||||||||||||||
Acquisition, integration, and other costs |
29,805 | 0.67 | 13,498 | 0.29 | |||||||||||||||||||
Disposal related costs | 195 | — | 1,538 | 0.03 | |||||||||||||||||||
Lease asset impairments and other charges | 1,045 | 0.02 | 1,295 | 0.04 | |||||||||||||||||||
Goodwill impairment |
85,273 | 1.92 | 56,850 | 1.22 | |||||||||||||||||||
Adjusted net income |
$ | 294,461 | $ | 6.62 | $ | 287,362 | $ | 6.19 |
Three months ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments |
Adjusted
non-GAAP amount
|
||||||||||||||||||||||||||||||||||||
Interest, net | (Gain) loss on sale of business | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs |
Disposal related costs | Lease asset impairments and other charges | Goodwill impairment | |||||||||||||||||||||||||||||
Direct costs |
$ | (53,242) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 57 | $ | 425 | $ | — | $ | — | $ | — | $ | (52,760) | ||||||||||||||
Sales and marketing | $ | (150,510) | — | — | — | — | — | 891 | 13,366 | — | — | — | $ | (136,253) | ||||||||||||||||||||||||
Research, development, and engineering | $ | (17,549) | — | — | — | — | — | 735 | 3,926 | — | — | — | $ | (12,888) | ||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (53,029) | — | — | — | — | — | 8,599 | 5,669 | (350) | (9) | — | $ | (39,120) | ||||||||||||||||||||||||
Depreciation and amortization | $ | (59,971) | — | — | — | — | 34,965 | — | — | — | — | — | $ | (25,006) | ||||||||||||||||||||||||
Goodwill impairment |
$ | — | — | — | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Interest expense, net | $ | (6,391) | 80 | — | — | — | — | — | — | — | — | — | $ | (6,311) | ||||||||||||||||||||||||
Other income, net |
$ | 2,438 | — | — | — | — | — | — | (237) | — | — | — | $ | 2,201 | ||||||||||||||||||||||||
Income tax expense (1) |
$ | (13,610) | (20) | — | 942 | — | (9,925) | (5,104) | (4,884) | 88 | 16 | — | $ | (32,497) | ||||||||||||||||||||||||
Loss from equity method investment, net |
$ | 3,128 | — | — | — | (3,128) | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 60 | $ | — | $ | 942 | $ | (3,128) | $ | 25,040 | $ | 5,178 | $ | 18,265 | $ | (262) | $ | 7 | $ | — |
Three months ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount |
||||||||||||||||||||||||||||||||||||
Interest, net | (Gain) loss on sale of business | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs |
Disposal related costs | Lease asset impairments and other charges | Goodwill impairment | |||||||||||||||||||||||||||||
Direct costs |
$ | (45,070) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 15 | $ | 2,561 | $ | — | $ | — | $ | — | $ | (42,494) | ||||||||||||||
Sales and marketing | $ | (126,449) | — | — | — | — | — | 392 | 1,668 | — | — | — | $ | (124,389) | ||||||||||||||||||||||||
Research, development, and engineering | $ | (15,532) | — | — | — | — | — | 660 | 177 | — | — | — | $ | (14,695) | ||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (52,483) | — | — | — | — | — | 6,460 | 5,243 | 375 | (338) | — | $ | (40,743) | ||||||||||||||||||||||||
Depreciation and amortization | $ | (69,631) | — | — | — | — | 44,991 | — | — | — | — | — | $ | (24,640) | ||||||||||||||||||||||||
Goodwill impairment |
$ | — | — | — | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Interest expense, net | $ | (2,251) | (11) | — | — | — | — | — | — | — | — | — | $ | (2,262) | ||||||||||||||||||||||||
Gain on investments, net |
$ | 1,065 | — | — | (1,065) | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other loss, net |
$ | (3,486) | — | 422 | — | — | — | 459 | — | — | — | $ | (2,605) | |||||||||||||||||||||||||
Income tax expense (1) |
$ | (12,962) | (9) | (146) | 290 | — | (13,886) | (1,238) | (3,097) | (137) | 114 | — | $ | (31,071) | ||||||||||||||||||||||||
Income from equity method investment, net |
$ | 336 | — | — | — | (336) | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | (20) | $ | 276 | $ | (775) | $ | (336) | $ | 31,105 | $ | 6,289 | $ | 7,011 | $ | 238 | $ | (224) | $ | — |
Year ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount | ||||||||||||||||||||||||||||||||||||
Interest, net | (Gain) loss on sale of business | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs |
Disposal related costs | Lease asset impairments and other charges | Goodwill impairment | |||||||||||||||||||||||||||||
Direct costs |
$ | (200,323) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 248 | $ | 760 | $ | — | $ | — | $ | — | $ | (199,315) | ||||||||||||||
Sales and marketing | $ | (519,694) | — | — | — | — | — | 3,756 | 19,072 | — | — | — | $ | (496,866) | ||||||||||||||||||||||||
Research, development, and engineering | $ | (67,373) | — | — | — | — | — | 3,665 | 6,516 | 40 | — | — | $ | (57,152) | ||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (203,461) | — | — | — | — | — | 33,246 | 13,846 | 161 | 1,361 | — | $ | (154,847) | ||||||||||||||||||||||||
Depreciation and amortization | $ | (211,916) | — | — | — | — | 117,748 | — | — | — | — | — | $ | (94,168) | ||||||||||||||||||||||||
Goodwill impairment |
$ | (85,273) | — | — | — | — | — | — | — | — | — | 85,273 | $ | — | ||||||||||||||||||||||||
Interest expense, net | $ | (13,988) | 176 | — | — | — | — | — | — | — | — | — | $ | (13,812) | ||||||||||||||||||||||||
Loss on sale of business |
$ | (3,780) | — | 3,780 | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Loss on investments, net | $ | (7,654) | — | — | 7,654 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other income (loss), net |
$ | 4,968 | — | (4,903) | — | — | — | — | (774) | — | — | — | $ | (709) | ||||||||||||||||||||||||
Income tax expense (1) |
$ | (41,370) | (44) | 1,226 | 365 | — | (30,696) | (9,902) | (9,615) | (6) | (316) | — | $ | (90,358) | ||||||||||||||||||||||||
Income from equity method investment, net |
$ | 11,223 | — | — | — | (11,223) | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 132 | $ | 103 | $ | 8,019 | $ | (11,223) | $ | 87,052 | $ | 31,013 | $ | 29,805 | $ | 195 | $ | 1,045 | $ | 85,273 |
Year ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount | ||||||||||||||||||||||||||||||||||||
Interest, net | (Gain) loss on sale of business | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs |
Disposal related costs | Lease asset impairments and other charges | Goodwill impairment | |||||||||||||||||||||||||||||
Direct costs |
$ | (185,650) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 262 | $ | 2,752 | $ | — | $ | — | $ | — | $ | (182,636) | ||||||||||||||
Sales and marketing | $ | (487,365) | — | — | — | — | — | 2,686 | 4,796 | 4 | — | — | $ | (479,879) | ||||||||||||||||||||||||
Research, development, and engineering | $ | (68,860) | — | — | — | — | — | 3,245 | 712 | 3 | — | — | $ | (64,900) | ||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (195,726) | — | — | — | (1,500) | — | 25,727 | 12,740 | 2,210 | 2,245 | — | $ | (154,304) | ||||||||||||||||||||||||
Depreciation and amortization | $ | (236,966) | — | — | — | — | 145,571 | — | — | — | — | — | $ | (91,395) | ||||||||||||||||||||||||
Goodwill impairment |
$ | (56,850) | — | — | — | — | — | — | — | — | — | 56,850 | $ | — | ||||||||||||||||||||||||
Interest expense, net | $ | (20,031) | 7,797 | (538) | — | — | — | — | — | — | — | — | $ | (12,772) | ||||||||||||||||||||||||
Loss on investments, net | $ | (28,138) | — | — | 28,138 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other loss, net |
$ | (9,468) | — | 5,655 | — | — | — | — | 459 | — | — | — | $ | (3,354) | ||||||||||||||||||||||||
Income tax expense (1) |
$ | (24,142) | (1,916) | (1,320) | (7,035) | 375 | (38,978) | (4,820) | (7,961) | (679) | (950) | — | $ | (87,426) | ||||||||||||||||||||||||
Loss from equity method investment, net | $ | (9,329) | — | — | — | 9,329 | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 5,881 | $ | 3,797 | $ | 21,103 | $ | 8,204 | $ | 106,593 | $ | 27,100 | $ | 13,498 | $ | 1,538 | $ | 1,295 | $ | 56,850 |
2024 |
Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 75,558 | $ | 50,564 | $ | 105,960 | $ | 158,233 | $ | 390,315 | |||||||||||||||||||
Less: Purchases of property and equipment | (28,129) | (25,504) | (25,843) | (27,159) | (106,635) | ||||||||||||||||||||||||
Free cash flow | $ | 47,429 | $ | 25,060 | $ | 80,117 | $ | 131,074 | $ | 283,680 |
2023 |
Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities |
$ | 115,307 | $ | 39,728 | $ | 72,808 | $ | 92,119 | $ | 319,962 | |||||||||||||||||||
Less: Purchases of property and equipment | (30,017) | (25,233) | (27,226) | (26,253) | (108,729) | ||||||||||||||||||||||||
Free cash flow |
$ | 85,290 | $ | 14,495 | $ | 45,582 | $ | 65,866 | $ | 211,233 |