Ziff Davis (ZD) Stock Forecast & Price Target

Ziff Davis Inc. reported a total revenue of $314.5 million for the quarter, reflecting a 2% year-over-year increase and surpassing market expectations of $313.3 million, primarily driven by a robust 4% growth in subscription revenue. The company demonstrated an improvement in its subscription metrics, with an increase in average quarterly revenue per subscriber coupled with a reduction in churn rate, contributing to a positive financial outlook. Furthermore, Ziff Davis projects continued strength across its key verticals, including technology, gaming, and health and wellness, alongside an anticipated enhancement in its advertising business dynamics.

Ziff Davis Inc. reported total revenue of $389.9 million for the quarter, down 1.7% year-over-year and below consensus estimates of $396.2 million, primarily driven by ongoing weaknesses in the B2B tech vertical, which continues to experience macro pressures. Advertising revenue also declined by 4% year-over-year to $233.0 million, missing expectations as growth decelerated significantly, which reflects broader challenges within the digital advertising landscape. Despite the adjusted EBITDA margin of 43% and a non-GAAP EPS of $2.33 exceeding estimates, the company's overall performance was hampered by declining organic growth and persistent headwinds, leading to a negative outlook on its stock.