Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Q1 2007 Earnings Presentation
22 slides from Ziff Davis's earnings presentation, May 8, 2007
Slide 1: Investor Presentation (Based upon First Quarter 2007 results)
EXHIBIT 99.2 www.j2global.com Investor Presentation (Based upon First Quarter 2007 results) May 7, 2007 1
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the slide entitled “Financial Guidance.” These forward-looking statem
Slide 3: Risk Factors
Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geo
Slide 4: Messaging as a Service
Messaging as a Service All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 4
Slide 5: Core j2 Global Assets
Core j2 Global Assets 11.3 million Subscribed Telephone Numbers (DIDs) Global Advanced Messaging Network >2,800 cities in 40 countries on 5 continents 16.9MM + unique DIDs worldwide in inventory Patented Technology A portfolio of 50 issued patents, and numerous pending U.S. and foreign patent applic
Slide 6: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted marketing (search, online media and radio) Sold primarily through: www.eFax.com, www.j2.com, www.onebox.com and www.evoice.com Use of proprietary Life Cycle Management Advertising & Calling-Party-Pays revenue supports the Free base Small to Mid-Sized Busin
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Six Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for ~ 50% monthly paid DID signups Free-to-Paid subscriber upgrades L
Slide 8: Service Roadmap
Service Roadmap All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 8
Slide 9: Voice Services
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Slide 10: Voice Services Time has Come
Voice Services Time has Come Natural Extension of DID-based Business Services SMB/SOHO Market (j2 sweet spot) Cross sell opportunities Product bundles ARPU & Gross Margins Similar to Core Service Offerings Personal Number even more Valuable than Fax (“Sticky”) Additional Lines are a Growth Driver So
Slide 11: Voice Service Brands
Voice Service Brands Voice Mail Delivered via eMail Free and paid Multiple methods of retrieval Fax, Voice and eMail Find Me/Follow Me Features Receptionist (Feature Rich Version of eVR) PBX via SaaS (Virtual Phone System) Basic Feature Set for SOHO/SMB 11
Slide 12: Receptionist Service Lines
Receptionist Service Lines Value Proposition PBX via SaaS Use standard phones, no PBX hardware Supports PSTN and VoIP Compelling ROI Professional/large scale image Low cost Location independent – Ideal for remote, virtual and mobile workforce eVoice Receptionist - Keep it Simple $29.95 (3 extensions
Slide 13: Financial Highlights
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Slide 14: Q1 2007 Non-GAAP Financial Results
Q1 2007 Non-GAAP Financial Results Margin Revenues $54.1 MM Gross Profit/Margin $43.3 MM 80.0% Operating Profit/Margin $23.6 MM 43.5% Non-GAAP EPS(1) $0.35 Per Share (1) Excludes SFAS 123(R) non-cash compensation expense, net of tax benefit, of $0.02 per diluted share. Based on an effective annual t
Slide 15: Modified Margin Trends by Year
Modified Margin Trends by Year Operating margins for 2004 to 2006 are based on Modified earnings. 2006 and Q1 2007 excludes SFAS 123(R) non-cash compensation, net of tax 15 benefit. See slides 20 and 21 for reconciliations to the nearest GAAP financial measure.
Slide 16: Financial Guidance
Financial Guidance Q2 Fiscal Year 2007 2007 Revenues (MM) $53.4 - $54.8 $217 - $229 Non-GAAP EPS (1) $0.35 - $0.36 $1.35 - $1.45 (1)Excludes SFAS 123(R) non-cash compensation, net of tax benefit. Assumes an effective annual tax rate of approximately 30% and 50.9 million fully diluted shares outstand
Slide 17: Supplemental Information
Supplemental Information 17
Slide 18: Metrics
Metrics 2004 2005 2006 2007 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Fixed Subscriber Revenues $16,021 $17,750 $19,122 $20,823 $73,716 $22,773 $23,756 $25,229 $26,963 $98,721 $28,537 $29,855 $32,179 $36,013 $126,586 $37,765 Variable Subscriber Revenues 6,041 7,314 7,863 8,226 29,444
Slide 19: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Net cash provided by operating activities $13.762 $15.227 $15.951 $19.405 $19.245 $14.250 $13.607 $25.903 $26.659 Purchases of property & equipment (2.473) (1.420) (2.433) (2.602) (0.757) (3.
Slide 20: GAAP Reconciliation
GAAP Reconciliation j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED MARCH 31,2007 Non-GAAP Reported Entries Non-GAAP Revenues Subscriber $ 50,293 $ - $ 50,293 Other 3,848 0 3,848 Total reve
Slide 21: GAAP Reconciliation
GAAP Reconciliation j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31,2006 DECEMBER 31,2005 DECEMBER 31,2004 Non-GAAP Non-GAAP Non-GAAP Re
Slide 22: Global
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J2 Global Communications — Q1 2007 Earnings Presentation on 6ix