Ziff Davis Q4 Revenue Falls to $406.7M, Net Income Slumps to $0.4M
Ziff Davis reported Q4 revenue of $406.7 million, but net income plunged to $0.4 million due to a $19.7 million equity-method loss and a $58.0 million pre-tax transaction loss. Adjusted net income fell to $100.5 million with diluted EPS of $2.56, while operating cash flow rose to $191.1 million and Citigroup lowered its price target to $29 from $35.
1. Q4 Financial Performance
Ziff Davis generated $406.7 million in Q4 revenue, a slight decline year-over-year. Net income fell to $0.4 million after absorbing a $19.7 million equity-method loss and a $58.0 million pre-tax loss on a business transaction. On an adjusted basis, net income reached $100.5 million, diluted EPS was $2.56 and EBITDA totaled $163.2 million. Operating cash flow increased to $191.1 million, and free cash flow rose to $157.8 million.
2. Full-Year Results
For the full year, revenue climbed 3.5% to $1.45 billion, and operating income soared 61.1% to $183.1 million. Net income amounted to $47.4 million, while adjusted net income was $272.5 million with adjusted diluted EPS of $6.63. The company generated $287.9 million in free cash flow and executed significant share repurchases over the period.
3. Analyst Rating Change
Citigroup maintained a neutral rating on Ziff Davis shares but reduced its price target from $35 to $29, reflecting concerns about margin pressures and near-term profitability challenges.