Ziff Davis (ZD) Global Technology, Internet, Media & Telecommunications Conference 2025 summary

Business overview and segment performance

• Operates a diversified digital media and internet portfolio with content, ad-supported, subscription software, and data businesses; about 60% of revenue comes from advertising, the rest from subscriptions and licensing.

• Recent shift from two to five reportable segments increased transparency, attracting interest from both public and private investors.

• Health and wellness is the largest segment, showing strong double-digit growth in both revenue and adjusted EBITDA, driven by pharma commercialization and digital health apps.

• Connectivity segment, including Ookla and related brands, is rebounding with new leadership and product launches, aiming for low double-digit growth.

• Cybersecurity and MarTech businesses have returned to growth, while tech and shopping face headwinds from search volatility and business wind-downs.

Strategic initiatives and value creation

• Enhanced segment disclosures led to increased investor interest and a review of value-creating opportunities, including potential divestitures.

• Management sees a disconnect between intrinsic business value and current market valuation, with all segments believed to be undervalued relative to their potential.

• Capital allocation prioritizes M&A for excess returns, but significant resources are also devoted to share buybacks, with 85% of cash flow used for repurchases in the first nine months.

• Recent investments in connectivity support new product launches, expanding market reach beyond traditional enterprise customers.

• Historical approach includes disciplined divestitures and acquisitions to maximize shareholder value.

AI strategy and technology integration

• AI is integrated both in consumer products and internal workflows, with notable examples like AI-powered food logging in the Lose It app, boosting engagement and retention.

• Proprietary platforms like Core, Halo, and Imagine leverage AI for audience insights, real-time digital surveying, and advanced ad targeting across multiple channels.

• AI-driven ad platforms enable activation beyond owned properties, plugging into major ad exchanges and social platforms for broader reach.

• Emphasizes not using AI to generate editorial content, focusing instead on trusted, high-quality journalism.

• Management is bullish on AI's potential to enhance value, but remains cautious about content integrity and the risks of AI-generated misinformation.