Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Q1 2017 Earnings Presentation
27 slides from Ziff Davis's earnings presentation, May 9, 2017
Slide 1: First Quarter 2017 Results
Investors Presentation ® First Quarter 2017 Results May 8, 2017
Slide 2: Safe Harbor for Forward-Looking Statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2017 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties
Slide 3: Risk Factors
Inability to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and the related impact on customer acquisition, retention and usage levels, advertising spend and credit and debit card payment declinesReduced use of fax services due to increased use of e
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Slide 5: Record Q1 '17 Consolidated Results
5 Record Q1 ‘17 Consolidated ResultsQ1 Results: All-time quarterly Revenue $255M, EBITDA(1)(2) $100M, FCF(1)(2) $62M, and Adjusted EPS(1)(2) $1.19Q1 ‘17 Revenue up $54M or 27% vs. prior year (largest QoQ increase), EBITDA(1)(2) up $13M or 15% vs. prior yearExecuting M&A investment to further improve
Slide 6: j2 Global Consolidated
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Slide 7: Q1 2017 Results vs. Prior Year
7 Q1 2017 Results vs. Prior Year See slides 22-26 for a GAAP reconciliation of revenue, adjusted non-GAAP gross profit, adjusted non-GAAP operating profit, adjusted EBITDA and earnings per diluted share for the Company as a whole and by segment.Includes Allocation from Cloud Connect to Cloud Service
Slide 8: Business Cloud Services
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Slide 9: Q1 2017 Cloud Connect (Fax/Voice) Highlights
Q1 ‘17 all-time high Cloud Connect Revenue of $94M, +4% vs. Q1 ’16Fax Revenue of $77M, continues to grow versus Q1 ’16, driven by strength in our premium eFax brandFax Revenue represents 30% of consolidated Q1 ‘17 Revenue and ~43% of consolidated EBITDA(1)(2)(3)Subscriber base of 2.4M DIDs, +1.1% vs
Slide 10: Q1 2017 Cloud Backup Highlights
Q1 ‘17 Revenue of $28M, +1.5% vs Q1 ’16, Revenue growth in constant currencies was higher at 5%EBITDA(1)(2) of $14M, +4% vs. Q1 ’16KeepItSafe EU revenue grew 18% vs. Q1 ’16Continued integration of the acquired businessesFilling key leadership roles in the businessInvesting in R&D to support and deve
Slide 11: Q1 2017 Email Highlights
Q1 ‘17 Revenue of $10.0M vs. $12.3M in Q1 ‘16Migrated to FuseMail: McAfee (EOL), Stay Secure, Comendo, and CudaMailSuccessfully migrated over 2.1M users, retained 80% FX headwindsEurope: double digit EBITDA(1) growth of +17% vs Q4 ’16Full Year 2016 EBITDA(1)(2) margin was 32.5% , Q1 ‘17 is 31.9%Acqu
Slide 12: Q1 2017 Email Marketing Highlights
Q1 ‘17 Revenue of $7.5M, +33% vs. Q1 ’16 Revenue run rate ~$31MAcquired marketing company, MailerMailer, small rollup Campaigner continues to focus on product development and sales efforts upstream to higher premium, mid-market customersUsage(1) up 13% vs Q1 ‘16ARPA(2) up 20% vs Q1 ‘16Campaigner Sal
Slide 13: Digital Media
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Slide 14: Digital Media Highlights
14 Figures are Adjusted Non-GAAPSee slides 22-26 for a GAAP reconciliation of revenue, earnings per diluted share and EBITDAGoogle Analytics (GA), Omniture and /or Partner Platforms Digital media business demonstrating strong fundamentalsQ1 ‘17 Revenue of $113M, up 81% vs. Q1 ’16Q1 ‘17 EBITDA(1)(2)
Slide 15: Q1 2017 IGN Highlights
Q1 2017 IGN Highlights IGN’s continues to expand its video programming and distribution partnerships IGN and Twitter announced a multi-day livestream partnership for the Electronic Entertainment Expo (E3) in June. IGN will produce over 30 hours of live coverage on TwitterIGN increased live video pro
Slide 16: Q1 2017 Ookla/Speedtest Highlights
Q1 2017 Ookla/Speedtest Highlights Ookla achieved several key milestones during Q1 2017Total tests across all platforms exceed 600M tests (+10% YOY) with mobile tests growing 22% YOY(1) Speedtest app installs reached 265M, an increase of 47% YOY(2)Released Speedtest Custom replacing NetGuage (Ookla'
Slide 17: 2017 Financial Guidance
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Slide 18: Reconfirming 2017 Guidance
Revenues $1,130M - $1,170M Adjusted Non-GAAP EPS(1)(2) $5.60 - $6.00 18 Reconfirming 2017 Guidance Figures are adjusted Non-GAAP.Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles and the impact of any currently anticipated items, in each case
Slide 19: Supplemental Information
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Slide 20: Financial Metrics: Consolidated
20 See slide 23-26 for a reconciliation of Non-GAAP earnings and EPS to GAAP net income and diluted GAAP EPSSee slide 22 for a definition of Free Cash Flow and reconciliation to net cash provided by operating activitiesSee slide 22 for a definition of adjusted EBITDA and reconciliation to Net Income
Slide 21: Financial & Other Metrics Cloud & Media
21 Financial & Other Metrics Cloud & Media Cloud Services revenue includes IP Licensing revenueCloud Services Customers are defined as paying DIDs for Fax & Voice services and direct and resellers’ accounts for other servicesQuarterly ARPU is calculated using our standard convention of applying the
Slide 22: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
22 Free Cash Flow (1) Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefits (deficiency) from share based compensation. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for inform
Slide 23: GAAP Reconciliation Q1 Adjusted Non-GAAP Earnings & EPS
23 GAAP Reconciliation Q1 Adjusted Non-GAAP Earnings & EPS Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of certai
Slide 24: GAAP Reconciliation Q1 Adjusted Non-GAAP Earnings & EPS (continued)
24 GAAP Reconciliation Q1 Adjusted Non-GAAP Earnings & EPS (continued) Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Eliminati
Slide 25: GAAP Reconciliation Q1 2017 Adjusted EBITDA
25 GAAP Reconciliation Q1 2017 Adjusted EBITDA ($ in thousands)
Slide 26: GAAP Reconciliation Q1 2016 Adjusted EBITDA
26 GAAP Reconciliation Q1 2016 Adjusted EBITDA ($ in thousands)
Slide 27: Global
j2) Global