Ziff Davis (ZD) 8 Nov 242024 Q3 Earnings call transcript

Thanks for holding. We appreciate your time and patience. Please stay on the line, and we'll be back in just a moment. Good day, ladies and gentlemen, and welcome to the Ziff Davis Third Quarter 2024 Earnings Conference Call. My name is Tom, and I will be the operator assisting you today. [Operator Instructions]. be Chief CEO Davis. Financial will and Ziff call Richter, Bret Officer this Vivek of Shah, Davis; On of Ziff will Davis. call Financial the now Bret I Chief Richter, over Officer to Ziff of turn Thank you.

may You begin.

Thank Davis QX Conference Ziff to Investor morning, you. Call everyone, Good welcome the and XXXX. for

Brett When call. mentioned, presentation Executive Officer Officer, website. on Shah. our Chief launch on which available A of is presentation A by Ziff button As the the Richter, joined viewer this Chief operator Davis there available webcast, the our will expand a today's the you for is to of is copy the I am Financial side, and slides. I'm allow Vivek on you right-hand

the through access press release, If have you you our website of it at www.ziffdavis.com. not received copy corporate may a

regarding addition, formal the In completing will at After the be a access questions. Q&A, conducting time to procedures you'll the you operator webcast site. from able the presentation, instruct for be asking we'll the that

In addition, investor@ziffdavis.com. can to e-mail you questions

remarks, our safe the language. we harbor begin read to allow me Before prepared

and results. webcast As results this call differ actual would and the Such uncertainties involve the you that cause statements. will include from to materially statements know, may anticipated forward-looking risks

filings, as discussions have Some proxy those forward-looking that well as webcast. slide to, factors in that well XX-Q are we of XX-K statements risks harbor our we refer for included We safe our uncertainties language have and documents filings SEC not as in risk additional to as of various the those show statements. part regarding the as include, you the recent but filings, disclosed and X-K limited risk factors filings including

statements outlook following supplemental our non-GAAP to Including equivalent. our measures addition, are slides nearest GAAP their In reconciliation for business materials.

to his Now Vivek let turn call remarks. for over the me

businesses to confident own our with our best we'd acquire growth X.X%. quarter and the are flows for in you, opportunity Brett, the certainly our currently pleased year we now in the leverage and It growth improvements adjusted quarter that and EBITDA of own. we morning, to and growth results and everyone. solidly good businesses X.X% very that balance revenue sheet was we're total third to We're like with Thank cash of of territory with us

The growth in in and for Digital of grew segment Media adjusted revenue best XX% nearly EBITDA XXXX. since over segment adjusted That's X% the in the QX. EBITDA QX

is organic growth All mixture of our in itself media a inorganic digital the which milestone and verticals of with grew quarter, a drivers.

acquired CNET was tech with which our grew double-digit vertical plus of May. existing with Our tech the brands, strong BXB. in consumer benefit properties, network, growth steady inclusion partly digits double our growth by of the a properties gamer quarter gaming quarter in The the had offset acquiring late declines plus from in in

with and subscription corner businesses mid-single our consumer Our mid-single from up and X.X% licensing continued up the acquisition was strong advertising benefit offsetting ongoing Connectivity gift with feel shopping and pressure wellness grew of provider quarter. digits, health side. turned slightly properties positive we on in the revenues Overall, in business. digital we've revenues was our digits, X.X% media revenues with the up the cards and

softening to we've a to due flat in and a revenue was quarter. over which declined SEO also a preserving partially segment's business, little the X%. focused took moving conference of new Moz the Moz but Martech The quarter our due revenues hit Cybersecurity on EBITDA, in by And in acquisition. very customer but adjusted the out been We

Our the e-mail to very business in marketing double continues growing perform digits well, quarter.

fast-growing in feature. value. which SMS grow capabilities become marketing like to has as e-mail, that We've marketing, believe extended media We offer rise, paid channels continue a costs our importance and to

down we're based year-over-year. partnerships on still While cybersecurity bookings a from in they growth quarters momentum. away few revenues signed did I and increase advancements being territory QX, believe product are sequentially positive from

taken have to company. mid-XXs valuable hoped, that margins continue we assets have EBITDA will initiatives owning and revenue the longer be but Our than for I to prove grow that can believe cybersecurity

also addition happy third publishing at I us acquisition report CNET brands successfully a up technology activity reasonable I'm existing our durable prices. acquire the M&A of Ziff last which technology years sets standard come. to our bearer only CNET to in This, quarter, to that is was previewed we for portfolio We of love be CNET, The many to not a to for quintessential of great in our closed quarter. acquisition. again, brands Davis QX.

identity Our quarters our years Martech of appears all come. portfolio. activity actively other to increasingly at transactions the will a relatively strong. we deal for The And acquisition our reasonable few with be last of prices dozens in completed to engaged across that patients small other market expect be areas we Group over resolution and tuck-in in the rewarded dialogues

particular. cash shares Ziff fuel Free of our to end, measures reflects adjusted per our per the and in that critical not diluted generate focus To the measure X.X our on as and of and we've nearly matter common repurchased free allocated stock. Year-to-date, repurchase the by us shares to of share. per Adjusted EPS ability We common share share capital asked company. strategy million to such EPS full the what X business is as best allocation earnings of often we most and growing only It strategy million another breadth to Davis of well. allocation that $XXX value adjusted flow is adjusted revenue the this I'm to activities. our EBITDA, incremental value metrics capture on flow whole but capital is cash metrics QX. M&A view important in intrinsic million company

performance their healthy to cash While to see cash alternatives. is yield pleased balance target our we're EBITDA free that our over we're time, will of on supports cash. to adjusted to be that sheet, which, further, all or as our focused critical various Brett our flow maintenance our levels. of of development capital toward end, flow discuss our generate moving any businesses allocation This at stages And may always at ability given free is

browsers, This designed Starting This we directly past with verticals. integrating products networks should Ekahau by visualize need enhance wall to measurement with design, Pro in WiFi introduced Users Day. to tool was in the VIPRE AI across advancement advanced in be AI AI optimize product AI-driven detection cybersecurity, their security-related and Ekahau, our of data, users adviser simplify we notable several receive improving proprietary and In drawings. able was our eliminating Ekahau modeling insights. for the network security both launched WiFi on This quarter, to enable making adviser, questions response, now VIPRE management and response manual web designed analysis online launched intuitive threat significantly endpoint actionable directly Pro key workflow should language AI now and more to into response incident solution. planning. embedded we and and AI our accuracy an speed AI-powered ask efficient. natural

needs. tool In tailoring feedback matching, compatibility should roles. out job Job with the streamlining health eCareers objective improve it rolled Health their which wellness, and process the This job specific users' AI help and assess care Fit search meet provides seekers our to to health Analyzer,

AI closely evolve with of products overviews. As evolution much the also AI, product our Google's we as continually with monitor search

top we As to overview. XX% of see AI an queries our less than include continue of QX,

has last as AI search the more earnings in and market complex serves questions models. search increasing of way, on people hypothesis Google's continue foundation ensures share our reiterated as shifted competing search a a more As and Google different In encourages that to training is evolving call, of but ask authoritative overall AI-enabled than AI-driven and in their search. not questions we content critical watch keep for engines are high-quality, search types essential usage marketplace. supporting search ever. It on landscape, more results AI the close accuracy materially

say continue paper Davis and popular we content publisher believe curated AI published that value XXXx to all between of that property a firmly than language more crawl. nearly This common five large models. research data sets Ziff major to prioritizing in favor the is premium to collected models, used it recently intellectual significantly general content, our in through revealing

our In which the now received which impact August, on EcoVadis among based Also in S&P evaluation XXth in our widely which as the CSA sustainability documentation XX assessed of our Let in XX the efforts. in which Assessment silver update the time all companies known me received Corporate company analysis. assessment, us top first metal, EcoVadis rates we in months. XX% a points, we places participated past We ESG annual Sustainability material an of on conclude by the company's the up with is an industry. from places thorough for score the moved the companies sustainability August, us of We practices. percentile

do well which submitted us the And our will and employees, these of we Participating next marks second and further suppliers, questionnaire, month, year last speaking scoring to week, customers host hand an are and an all employees Brett. our organization change. fourth annual leaders to that, in of call come inspired and let who for the With impact together throughout their me investors, assessments participation. leadership the and on our actions company-wide opportunity colleagues communicate our we Summit, making purpose opportunity to positive And employees. to back of driving the provides our work Climate CDP be by in

Vivek. Thank you,

our discuss Let's results. financial

XXXX. and reflects our both release for QX results adjusted Our earnings GAAP financial

today, discussion QX my and their primarily our prior our XXXX commentary focus will periods. comparisons to financial will adjusted to We and results relate

of third $XXX the as period $XXX.X XXXX of with of reflects third for increase quarter of million EBITDA QX quarter X.X%. with financial an revenue adjusted XXXX. million for million for prior the period. of X.X% $XXX.X the reported We increased $XXX.X our This compares XXXX the X comparable of year revenue compared Slide reflecting million summary results.

for as QX Our was margin the point XX.X%, basis adjusted a XXXX. XXX compared EBITDA improvement quarter with

compared a QX as adjusted was XXXX. $X.XX, reflecting X.X% increase EPS QX diluted with

of growing adjusted results adjusted growing our results year-over-year quarter's During said the X%, revenue we that diluted half we growing almost EPS reflect the and that with in this more year to improvement. XX% our a call, significant earnings improve QX nearly believe second we XXXX EBITDA expected X%, financial QX than XXXX

addition, adjusted results our EPS all diluted In and growth. adjusted year-to-date EBITDA revenue, year-over-year for reflect

Let's discuss certain to details relating results. these

increased marketing reflects the for and Marketing compared improvement subscription revenue half and in XXXX. performance revenue of advertising sources decline X marketing and with half as a our represents QX with compared and first company's as summaries X prior advertising performance. XXXX of X.X% Performance X.X% revenue, reflect two primary X the with Advertising performance This Slides performance year first and licensing. compared period. the Slide significant as the XXXX and of

businesses earnings BXB on XXXX shopping gaming in technology consumer discussed factors Advertising contributors Trailing were part was health the year-over-year offset growth This revenue revenues that growth. by prior relating was XX-month significant performance business. year-over-year of flat we in and with reflecting to advertising our decline tech than our the market and by the in impact our and to marketing QX a call less year, X.X% compared decline. nearly performance and and the

basis and XXX Our prior with was nearly performance net points retention marketing period. approximately as XX%, compared advertising up revenue year the

As with per These customer of during marketers a advertisers Davis quarter, prior as third slightly average the performance of set defined than average a with contribution the the revenue year with nearly Ziff customer. compared more period $XXX,XXX. reflect X,XXX revenue and in an metrics more slide, higher consolidated advertisers served per quarterly

X.X% had the gains for increase. Slide in prior metrics revenue table the of There customers sequential licensing Slide licensing Humble XXXX the and includes grew We in X QX sequential revenue Bundle, licensing million and the within X.X year in bottom reduction licensing cyber X nearly and subscription months. and with QX as performance. XXXX last part security and Lose a our X.X% last X period XX by and quarters. subscription in and It! The on reflecting customers. Subscription were compared a subscription during depicts offset

from modest other The Ekahau Our from QX [indiscernible] XXXX part revenues Bundle $XXX,XXX in sequentially revenue X.XX%. higher $XX.XX. by sales customer game lower increase. company's reflecting offset and quarterly X.XX% sequential per year-over-year, by DailyOM declined revenue primary XXXX Churn was from to average revenue publishing. approximately Humble QX declined A also

businesses relates Slide and months organic less organic businesses owned least revenue, from Revenue full a X while for total XX than acquired the for provides included growth for revenue revenue in rates last to we've months. is at quarterly owned XX X quarters.

second as metric half improvement that Third XXXX. revenue of this X%, earnings QX the organic we in XXXX declined compared point statement a with than noted consistent less expected that made to improve reflecting quarter we the percentage on This QX with our the we call X is when XXXX year.

XXXX, to was activities. Turning our and for balance sheet capital very as end sheet. of our X. of continues quarter approach strategy. the balance allocation XXXX active our Slide the Please we represent to And deployment to foundation refer strong QX a remains our capital

end of we XXXX, had $XXX the and investments. of million of cash As long-term and $XXX equivalents QX of cash million

capacity leverage undrawn. significant net leverage basis $XXX credit have also facility on both million gross We a and revolving remains our and

During for acquisitions. of the cash quarter, deployed million we $XXX

As million completed approximately XXXX, exchange these $XXX.X new X.XX% $XXX.X $XXX due earnings In we in notes we convertible call of paid July for cash. exchange convertible due discussed on and our our XXXX million notes and offer million QX issued for XXXX. of X.XX% notes, we in an XXXX,

principal the debt maturity our outstanding. amount reduced $XXX of As debt transaction, $XXX of extended million by million outstanding our a of our and of result gross this we

the our million by convertible We number underlying outstanding more than shares X.X debt reduced also of shares.

discussed repurchasing earnings X repurchase expiration of year, quarter, the or our call, of the increased and XXXX we by of shares repurchase to our this this Taking shares X.X million. $XX our our share stock through August for our of X.X% common shares by also in during August authorization third our of of shares advantage million we XXXX. Board, QX million our approximately our repurchase increased action extended Board as repurchases X the stock in date million This accelerated stock outstanding As authorization February of stock XXXX. approximately year-to-date activity

repurchase shares program, more purchases. to we will than stock authorized our stock remaining million have with to X.X regard continue and under opportunistic be future We

net quarter activity. QX third reflect of leverage ratios all this Our

the end Xx and leverage financial XX plan pursuit including our We the of support of net leverage leverage value. continue sheet and to As quarter, shareholder trailing of our balance our XXXX value gross X.Xx third of of adjusted X.Xx, to was was months investments. enhancing the EBITDA, strength to our

capital allocation utilize of arise. all support to approach And, Our M&A we capital allocation plan to particular, is program. in opportunities dynamic, as our active and our alternatives

to Turning Slide XX.

strong XXXX and range year, businesses, for quarter, originally guidance continuing look We which that solid EPS presented double-digit growth. we expect forward at strong especially are with year QX the Most and our in growth. EBITDA high revenue the XXXX. performance the fiscal reflects we're single-digit growth importantly, prospect adjusted in growth excited collective February we momentum adjusted and to fourth reaffirming XXXX a the EPS very adjusted of we financial in

their Following various for outlook are our GAAP certain business equivalent. supplemental including materials, slides reconciliation statements the non-GAAP nearest measures to

pleased acquired million a compared Overall, results. that free as This QX XX of than million section more reflects on reflect includes figures XXXX XXXX. XXXX recently Year-to-date free This million. QX reconciliation a are increase cash positive was free contribution cash with $XX $X.X approximately QX a in XXXX from flow, flow our TDS flow. These business. our very cash $XXX QX we with XX% includes Slide XXXX of approximately

that elements the our of many define strategy. reflects quarter This value creation

metrics diluted foremost, significant adjusted growth of cash EBITDA, in free EPS in the represents financial growth and our key flow. all adjusted and quarter and First

million represents of shares In by addition, several diluted during of reduced outstanding upon a underlying our the debt allocation able of more X.X acquired X key our and stock. strategy. to which CNET. common our we We $XXX We than pillars million the potentially repurchased We quarter convertible the retired were shares million period we of debt. our shares capital outstanding execute

deployment we patient act as consistently years. we have our But we have communicated, disciplined been act the we to have navigated the with have during last challenges decisively. We when will and capital opportunity as several

XXXX. focused rejoin I to begin on ask queue you With now to operator how that, instruct of to we the now the as XXXX are would balance We for to for us plan on questions.

Thank you.

this We session. from conducting [Operator question is from Ygal a And now be question-and-answer Citigroup. Instructions]. will first coming your morning Arounian

XQ. got CNET nice Nice in expecting on we've here. a to of that the a know full of we're step-up and outperformance turn just see into kind helps. quarter the still Maybe I

in else up. organic are expecting have And us get that help we what in then to growth kind of Just frame step XQ? to a back drives particular, follow-up. I

I'll you for the that. Thank question. take

all I in business. think reflects underlying the trends the really

quarter continued wins think, business. think in company, focus and across our fourth of business. about dynamically driving first board the cost the it's I a remember and you But for execution seasonality not maintaining only really adjust just the when advertising foremost, but to the the our on adjusting our to and revenue base

full quarter we'll You get a CNET. note of appropriately,

the have of regards seasonality growth, a shown trends no the throughout With those on to of have our year, and where We our shopping in continuing. comment straight various anticipate businesses we businesses what we importantly, beyond organic said certain improvement already rate our QX when significant metric we in to But specific reported we quarter. was QX quarter. dynamics for certain what growth discussed this a specific this relative organic certain

Yes. at helpful The be two overall we only might martech And which BXB One I'll are other have and weighed by the cyber offered is the rate. that thing ad QX we that factors what process of products share other is on we business. the I would BXB, really one organic, is is that add, reducing the when the unit. and number thing is in on of look

business. revenue, business, we And the walking from want by And margins. simplify we so to away we simplifying can think the improve

find sort business. business, a those what while, with with what do the we're to have core that profitable doing the followed the shrink often of which is company to BXB acquisitions, And so there's we of a -- who for grow the

simplifying improve we're to to XXXX. growth help however, contributes, obviously going think And negative it a we margins That so in element. we're organic

are little QX. into that's we absent remarks, going those in there. a discussed some bit cyber we're challenges we But territory, continue to the two, outside then that, think martech, good and in I And having of and prepared

really Okay. I you things commentary and Great. give expand together. of one it a put and of some here, to AI maybe on That's helpful. these bunch maybe Gen guess on

of search. your search results queries XX% So are Gen seeing in AI

think that's And additive value evolved I'm at as you've high-quality said been in past, traffic. all, the a that's I to GenAI -- you you your bring that about still that has if the Search publisher. then talk not sure case. if you've the

approaching all little of GenAI, around and your does on getting you're you're that expand more? maybe doing how philosophy a that So fit with kind what just bit

And to. thing. Yes. let No, correct one me just happy we're

So the valuable not AI a the rate, slightly us but from of X%. and vast It's percentage our XX% majority a of presentation last drive overall relatively queries traffic. that was pie. search the small portion I quarter still, obviously, are overview That to think XX%. XX%, of so up, But

click have cited estate Gen most can likely essentially I is industry which is domain So real where rates excess AI an the in we to or just small. versus the of Google of authority most of to the view activity click-through And you overviews activity will listen in sourced context it of say to queries context and more XX% overview I'll presumably within thing and also actually brands properties just excellent. universe, view out AI first just because more however, But on to XXX, be to that Google's commentary, search high entirely that GenAI domain leads still if in valuable queries a search of scale that on more our that that's it's hard have ongoing and AI that point is relatively to search, there still I get. our out the respect, is With quality a tease in that's think through. you leads to their were like how that none. amongst is in

view All for algorithm that say will in I few those but very changes do decades set well. to think think to with we've I attuned algorithm changes, properties to the them, the that, been this is market consistent just this past. I now. particular let's of those look, kind continue call of watching a

of direct get in rank search, So But fair amount fair search. traffic. social a a out we're do traffic. We amount fair of we focused on very traffic. We well app remember, amount continuing of do also to do traffic a of

we time We e-mail reach have and when audience and a comes it a to talking I thinking audience. search, pretty diversified significant of are about of ways we can about and spend to and reach organization traffic but database we monetize a in lot e-mail know which

question from is Ross Sandler Your from Barclays. next coming

Great.

business, of revenue maybe quarter trajectory a end Just another least that which have the XQ advertising the as to nice at at implies start, you high acceleration, for mentioned. seeing will the full

that advertising based we're look to to how factors we cause about So growth sustain the at, on that should rate I lower would higher XXXX, in either out as itself, where just guess go we or think more got it follow-up having portfolio? And nature your with CNET the the adds is of after. And the accounts. advertiser then you're larger conversations one that broadly, to then scale given change kind business. helping of I've overall that

thanks No, the Ross. for Yes. question,

been we'll CNET capability last Spiceworks marketplace to and So ZDNet uniquely because do position. Look, very dollars but has Group, thesis, organization is the and that. think as rebranded absolutely it reality real a and I gone Lifehacker, CTV which We larger start market with do into multi-platform has in Mashable, us a moved appetite advertisers of lot programs programmatic integrated, Group have group, is lot been CNET that competitive of ad the of tech. to into to but your that has a need puts and and versatility the of believe to different social you which thoughtful, is PCMag, amongst scale, go play scale search part me that do within a there is just CNET the singular one CNET where a bringing let into with -- investment with

this January bring And using be CES to we'll in so to really bear.

-- of group. Sales Revenue within has CNET the of Chief Officer been just Head announced new a that Head have We

tech. are we So at time we're super optimistic a shoots what about seeing within when consumer green least at that means

well this think, electronics I year. have consumer and for in PC those underlying very categories. done strength consumer is And excluding the So and mobile properties, in that, CNET,

amount a also as positioning There's fair positioning themselves interest AI vendors tech companies. AI company's in advertiser affiliating of with and forward

is tailwind, becomes for next about I so That's the -- obviously, year. to early it's say think, for the a the are again, we're and substantial I XXXX, in nice say are But of And respect that's call. most with will probably things that, things up think business. obviously us next and the that what anything managing. understand I to that headwinds, we also

cyber just organic let's It's we've well. headwind been base for sure. it's growth martech. cost managing but an a sure. really, So It's take So not and total headwind, growth right? for headwind EBITDA really that an

think game a focused, that's bullish we always flow which of And So the has compounder a long that we're this I kind where say been how been line. have next term, is, I That's mentioned going free -- lot in to BXB. net very with quarter. that and company the and we of this what is all how bottom and seeing, we've I'm of what income, just that become I doing do year. plan cash EPS, compounder, you're think, into on

question, another You had right?

Yes.

like one as mentioned, what conversion of flow on XX% was but high target at the mid- And Brett, you medium-term of the conversions. to to kind free can kind just guys EBITDA related you The XXs end in the the second this to we're quarter, said one, said above hop there. and you was you I in think of, above cash

we caused about tick there of converting should EBITDA were to how flow kind to think free any state up? And that steady So that go forward? cash factors

Ross. I'll that. Thanks, Sure. take

rate the business of extra and So with expectations the going at CapEx where perform to ultimately and our again, of interest the conversion, we is tax come more leverage look starting EBITDA dollar we look because impact. when in impacts the necessarily range range that are at course, we and there doesn't a we our obviously conversion more first EBITDA or expense, run most

So again, when free range. about about a think flow, cash we within we think

the could excludes any three, be of fees, MAs be targeting conversion kind of could We into we also had that unique . have we're we say of some kind which -- aspects rate, we some transactions. [indiscernible] when it quarter fancy

exchange cash a every seasonality of one quarter, contribute I ultimately things pay which also happened. looked debt free is than when then lot we look We convert of to timing QX in we capital, tax performance look it negative working in have we was relates positive of timing at payments. this payments, particularly recently to contributor QX QX. One, our have for the our a in and QX. our flow, businesses to QX, contribution PDS of critical. expense at think interest on QX, as PDS. We in our a And remember of and other We the

which we've So a that indicator where is quarters several last for this points improvement cash. a can't in to from working to pointing an this a been given progress, also, in is look it any headwind something course, key I that typical flow next that significant cash to financial business a say, as we at of of our think obviously metrics in working the capital, something that's quarter. of recapture capital see all quarter it. overall to we percent. the year-over-year quarter free the in quarter It highlighted. this points maybe very any but at But I for contribution what And did significant need an was up to go case, XX-plus see

an to that continue within quarter, target necessarily we're excluding depending quarter onetime again, on higher in to items mid-XXs not any given not was of indicator our going performance the So very that. this range towards kind and to specific or strong, lower the back up

Cory from Carpenter is question JPMorgan. next from Your coming

the the days ago ask few on earlier you to use about data to wanted released I models. study a referenced train of and AI publisher

then a talk key AI this approach have you I to your exercise going follow-up informs licensing your could Brett. deals? it about and And after for how learnings through Just potential

Cory. question, the for Thanks Yes.

requires foundational maybe I and fundamental training. deals what where that of respect companies think is that aware have essentially I models view licenses training that or to it's liability from the large on a a actually deal we're that fair their for it call announced for these AI is these of disagreement owners go-forward any of who hasn't one releases with of So operators RAG content LLM, landscape and exists the recognize think that or is the Many to within model they look, training. like may in which and view license our thing own paid a cut not are language that been actually there ours use companies And include between license. is

understand to much premium what important it's process really So to and do content important. other how our LLM wanted then within publisher that, of is training. the And content how the is very that headline is of we content

what of vast so they you weight the it's a material. of trained particular And while the Internet, the And hear and of with content models. may the a portion publisher is the is they or it's is in that, data, entirety provider sucked training in on entirety Internet, a which the impact of disproportionate portion Internet. a has owner or copyright no there these a small very that marketplace or quantum particular And data essentially look, the the

these augmented some needs sorts from for a but are is licensing there did learned And that. training, models piece but all RAG think we starting learn licensing our to to be generation, not for so continued And view is believe and real reading. have to little Axis which in retrieval training. not that of for large the best. just just there on get language implications And paper It's continue it. worth I the attention,

Davis. and I understanding. and So It not number worth It reading it's think of important. worth fact is it's a based. just about about publishers, It is Ziff premium I think is

then capital bit. The just And commentary repurchase a on changed allocation.

I we which greater expect buyers, on you into said quarter, but we be it And this and around think Maybe you repurchases? I said active share latest this you think to going much, focus Last quarter. on you're just were signaling a reading allocation? from are be thoughts away capital we're too M&A your maybe quarter, to opportunistic repurchases. perhaps

allocation. our has changed Yes, nothing messaging our to Cory. capital regards overall Thanks, to in approach with

important and was August, clear spoke stock to of that given we the at did. the trading I support capital think in were it would time when we that show allocate we think we the I

share I best this a be fair and And again dynamic think I relative M&A repurchases our said is we've of or significant flexibility consistent. -- those always each pillars. highlighted it more year. allocation capital in the time, recent approach we sort think debt and to history I bit the to repayment, maintain the But prepared of and towards any I our capital word over optionality spent capital of remarks. to is putting

to want message or long no read to overall, tilt towards immediate you continuing an So M&A. we're term short-term whatsoever. into that whether But change

Your next question RBC. coming is Jaluria from from Rishi

to into All Wonderful. question. some the want maybe the that I'll of one right. seen at I to Moz group. drill it we've softness keep

maybe of a maybe think broadly. we I you the at one has GenAI, about of continue that new risk been little these acquisition. maybe conversations and talked taking to sort to what you're that? places exactly said soft martech investors You Can into SEO customer lot happened, dive as deeper steps have what maybe And bit a mitigate of more has even in have around

function So that to starting a why tech. maybe this is of some not just of display AI

Rishi. question, Yes, great

couple a So I'd things. say of

So the part a Con, Con. bit as Moz I softness, to obviously, do timing of pointed out, had of little Moz the with the

something I SMB that Moz Look, pro keep of mind. that part enterprise. the just in and to may customer not is be orientation think this more in So is

state with to little do prioritize. and so bit they're sort And SMB that to looking have where might maybe of a the

the and have what's had and I search acquisition. a on happening, think all the search effect may chilling press around around just confusion customer of

this the right around may to sure people has confusing invest some will right or the AI a confusing. want even But I It's I'm the the sense, say well you to was improve that prevalence dialogue in now. that be saying not need in is confusing. and to also So more before. I platform It product. we

UX product delivering be is as needs on we so to it improvements. are not focused our user-friendly given base. customer The And as

is team ultimately over has the think at that then more something say that. which been least focused customer trial I'll months, that attention. will and translate So really past And the into we on X

of up do in of We around are up places realized show deal think certainly expansion paid do with its something. we're steady growth and the showing but worked. research drive Moz now we potential, question to sell haven't marketing more early we need that marketing, even also And have subscriptions. do to SEO SEO to always an just paid that marketing, to think to just because get state do to out We invest the a around area be we we going to We ton the how into is it And relied do a who some lean paid a did declining on and great entities expect growth the compete this customers for margin or I has need ironically to of in we there's of has to it. right asset. now But where SEO. not work service. it, business becomes it out reality is look,

from Your next question from is coming Patil SIG. Shyam

little This is off, your front? deeper a touched there go bit vertical on And you in for got categories, picking and a follow-up any now? we've like sounds your just little well. the more Can then a prepared it Vivek, up looks And as where on there that right of what major bit. are are attractive you particularly deal seeing areas you're Shyam. environment or things market Maybe M&A unpack and remarks, seven for Aaron activity, a the starting on

Yes. question. No, great

really had around I just won't what or It's the of is We of into is that, the dynamics a to all go with asset. and now that I'm with it particularly that feels with transactions. close to into So look, acquisition. that saw dialogue. is for had went the that it the And that volume normalized, certainly being did . terms environment way, we and respect describing history We that I motivation pre-COVID. right nature by CNET I long transaction. -- not price the It's that play meaning And and And But you mean? those I important. do details. nature the I'll think, like believe dialogue the this the tell throughout.

our You're in advantages. categories. M&A. at We're of right, for part verticals not of looking the We're we and is one of and a have set market. sectors just a platforms number looking diverse That one of different

so card with for I acquisition And quickly offer of CNET. to And I'm and through best shopping obviously, some continues to us, I'd say offers active think tech most if the our and been gift with them has area, the opportunities. go

gaming good And There I often very we that's think they're is that very lot consolidate a these can space. gamer It deals we within gaming. are when value to Obviously, of get network some have spaces really are think challenged, network. gamer looks and been a challenged I promising. price when a an fragmented did opportunity fragmented have we type space.

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identity. to is the so lot are and by a e-mail way, we me, e-mail. like of about it things And is There --

lot the feel free EBITDA cash flow, So characterize balance opportunities positioned of think about debt million, in I $X.X Again, that's on well how good. over gross a places. We're we would it. TTM I of great cash sheet,

you your businesses, holiday I'd a from quickly, figured if this I retail And thoughts just year given the ask on any perspective? early look a have advertiser or how either could Great. season consumer shopping

to It's early. early It's say.

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already you until perfectly are a honest. starting, it's But hopeful in know things you're to but So going season. to solid it we're that be don't be

Evercore Robert question next coming is Colbert ISI. from from Your

acquisition your of that? and extend some your thoughts on Any on wondering you on internally, particularly activity. to maybe GenAI Just give if leverage that maybe us use early recent update any the ability in of

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don't there. me, to help -- there again, can but not of help outline, any Absolutely. things maybe in helping process. there structure research, change put in in emphasis things so Are we and And Are real that a kind not that's our can that's that

coding. am I Where about very bullish, AI bullish for is AI

generate AI code, all company, lines codes so of And across would were by using which of I the activity AI. to written quantum in of say the

humans involved. still You need

It require You to and can't different doesn't. It it language, of the or works doesn't into binary. goes you code? language. require sources. that to speaking require doesn't but write It's that code and It just it's is then AI Code step have some It and generation what judgment tone. for away content doesn't code journalism. but

leveraging code a So for focus lot and writing. AI code of on

and mentioned right? and -- product, this do tried I food for made is, how it to AI that's so our incorporate our we thing them it products just is loose and make how in the within to subscription logging customers, and much last app this is call, about but use call I more. offering used and call going use didn't AI each the do being happier which does the one they're our Then of this -- How to like I become products always the the one AI that some I like with how in into think help the I on easier is

product Gen development, improve looking but So and with experience, content. user the AI for AI coding and we're GenAI for help Gen to to always not

that Any been X of or And through categories in like the just sort comments far, curious food so through sort think, Great. and about of earnings, right beverage. has that. health come some your of weakness business of I in some

owing direct-to-consumer very side side, its What is that a had of advertising. a within the it's part headwinds across to the of not largely that within side. and wellness. We've that's board ad just health seen the No, quite big we formula provider had on pharma looking back would on large say the it's marketing, but food provider on Yes, a some good and I largely the cutting because question. beverage been

question-and-answer the our back like hand Brett time, this remarks. conclude I'd does closing This floor to session. At Richter for to

results. day. Thank to information a regards participation we conference for We Thank you Again, good appreciate late everybody our you. some see with today of our upcoming joining. there. joining always, and as posted hope discuss year, to us you And QX this very some Have to much, we XXXX thanks Tom.

This call. conference today's does conclude

you have may for at a your participation. and wonderful day. disconnect this time, once your phone lines You again Thank