Ziff Davis : Q1 2024 Supplemental Materials

$ in 000's

Ziff Davis

Three months ended March 31,

2023

2024

Net (loss) income

$

(7,627)

$

10,627

Interest expense, net

4,480

1,769

Loss on sale of businesses

-

3,780

Unrealized loss on short-term investments held at the reporting date, net

20,345

10,705

Gain on investments, net

(357)

-

Other loss, net

908

104

Income tax (benefit) expense

(616)

8,231

Loss from equity method investments, net

9,182

645

Depreciation and amortization

54,623

48,453

Share-based compensation

8,402

8,872

Acquisition, integration, and other costs

3,525

6,266

Disposal related costs

149

496

Lease asset impairments and other charges

1,319

803

Adjusted EBITDA (1)

$

94,333

$

100,751

1. Adjusted EBITDA is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain items including: Interest expense, net; (Gain) loss on debt extinguishment, net; (Gain) loss on sale

of business; Unrealized (gain) loss on short-term investments held at the reporting date, net; (Gain) loss on investments, net; Other (income) loss, net; Income tax (benefit) expense; (Income) loss from equity

method investments, net; Depreciation and amortization; Share-based compensation; Acquisition, integration, and other costs; Disposal related costs; Lease asset impairments and other charges; and Goodwill

2

impairment on business.

Unrealized (gain) loss

(Income) loss

Acquisition,

Disposal

Lease asset

Adjusted

GAAP

Interest,

(Gain) loss on

on short-term

from equity

Share-based

integration,

impairments

Amortization

related

non-GAAP

amount

net

sale of business

investments held at

method

compensation

and other

and other

costs

amount

Q1 2024

the reporting date, net

investments, net

costs

charges

$ in 000's

Direct costs

$(47,067)

$-

$-

$-

$-

$105

$61

$170

$-

$-

$(46,731)

Sales and marketing

$(117,000)

-

-

-

-

-

758

541

-

-

$(115,701)

Research, development, and engineering

$(17,774)

-

-

-

-

-

1,090

223

40

-

$(16,421)

General, administrative, and other related costs

$(96,783)

-

-

-

-

26,319

6,963

5,332

456

803

$(56,910)

Interest expense, net

$(1,769)

(7)

-

-

-

-

-

-

-

-

$(1,776)

Loss on sale of business

$(3,780)

-

3,780

-

-

-

-

-

-

-

$-

Unrealized loss on short-term investments held at period end, net

$(10,705)

-

-

10,705

-

-

-

-

-

-

$-

Income tax expense (1)

$(8,231)

2

-

(1,037)

-

(6,339)

(1,086)

(1,395)

(124)

(160)

$(18,370)

Loss from equity method investment, net

$(645)

-

-

-

645

-

-

-

-

-

-

Total non-GAAP Adjustments

$(5)

$3,780

$9,668

$645

$20,085

$7,786

$4,871

$372

$643

Unrealized (gain) loss

(Income) loss from

Acquisition,

Disposal

Lease asset

Adjusted

GAAP

Interest,

on short-term

(Gain) loss on

Share-based

integration,

impairments

equity method

Amortization

related

non-GAAP

amount

net

investments held at

investments, net

compensation

and other

and other

investments, net

costs

amount

Q1 2023

the reporting date, net

costs

charges

$ in 000's

Direct costs

$(45,730)

$-

$-

$-

$-

$196

$76

$85

$-

$-

$(45,373)

Sales and marketing

$(115,920)

-

-

-

-

-

924

1,419

-

-

$(113,577)

Research, development, and engineering

$(17,914)

-

-

-

-

-

783

175

-

-

$(16,956)

General, administrative, and other related costs

$(101,263)

-

-

-

-

33,319

6,619

1,846

149

1,319

$(58,011)

Interest expense, net

$(4,480)

74

-

-

-

-

-

-

-

-

$(4,406)

Gain on investment, net

$357

-

-

(357)

-

-

-

-

-

-

$-

Unrealized loss on short-term investments held at period end, net

$(20,345)

-

20,345

-

-

-

-

-

-

-

$-

Income tax benefit (expense) (1)

$616

(18)

(5,080)

89

-

(8,893)

(1,585)

(948)

(37)

(329)

$(16,185)

Loss from equity method investment, net

$(9,182)

-

-

-

9,182

-

-

-

-

-

-

Total non-GAAP Adjustments

$56

$15,265

$(268)

$9,182

$24,622

$6,817

$2,577

$112

$990

of each adjustment:

a)

Adjusted effective tax rate was approximately 23.9% for the three months ended March 31, 2024. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $18,370 and the

denominator is $76,841, which equals adjusted net income of $58,472 plus adjusted income tax expense.

b)

Adjusted effective tax rate was approximately 23.8% for the three months ended March 31, 2023. The calculation is based on a ratio where the numerator is the adjusted income tax expense of $16,185 and the

3

denominator is $67,911, which equals adjusted net income of $51,726 plus adjusted income tax expense.