Slide 1: j2 Global Investors Presentation: First Quarter 2015 Results
i2 Investors Presentation j<) First Quarter 2015 Results May 7, 2015
Slide 2: Safe Harbor for Forward-Looking Statements
j2 ) | 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 2015 Financial Guidance. Such forward- looking statements are subjec
Slide 3: Risk Factors
j2) | Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and the related
Slide 4: Q1 2015 Results
Q1 2015 Results
Slide 5: Q1 2015 Results
j2) | Q1 2015 Results * Record Q1 revenue of $161.3M, +19.7% +$26.6M"”) * Foreign currencies negatively impacted total revenue ~$4.7M on YoY basis, ~$2.3M QoQ * M&A strategy continues across categories, geographies and services * Q acquisitions completed in Q1 2015 Business Cloud Services * All-time
Slide 6: Q1 2015 Results vs. Prior Year
j2 ) | Q1 2015 Results vs. Prior Year Total Cloud by Unit Cloud Services” IP Licensing Qi2014 Qi 2015 12014 1.2015 ‘Adj. Non-GAAP Revenues $ 99,493 $115,802 $ 1,929 $ 2,258 Adj. Non-GAAP Gross Profit 80,485, 92,715 1,929 2,258 Adj. Non-GAAP Operating Profit $45,394 $51,801 $477 $1570 EBITDA $ 47,030
Slide 7: Business Cloud Services
Business Cloud Services
Slide 8: Revenue mix by service
j2 ) | Revenue mix by service * Revenue grew across all core services * Customer count grew by +240k QoQ * Qt Cancel rate better than prior year 2.2% vs. 2.3% * Fax is now 45% of total revenue Revenue Mix Qi 2014 Q1 2015 mFax/Voice mOther Cloud m™Media
Slide 9: Cloud Connect
i2 ) | Cloud Connect j2).CloudConnect Orkax’ DeFaxCorporate eVoice ve @> cITYNUMBERS * CreatedCloud Connectto focus on fax & voice services * Dedicated team led by newly appointed President with focus on new value creation * Organic growth * Enternew connectivity and mobile services ° M&A * Improve
Slide 10: Cloud Backup Update
j2 ) | Cloud Backup Update * Q1 2015 revenue +68% vs Q1 2014 * EBITDA continues to grow, at full integration above 40% margin * New Livedrive deal signed with Carphone Warehouse UK, sold as Geek Squad Backup in 700 stores * Acquired SugarSync in late Q1, further enhances our online backup suite of s
Slide 11: Email Security Update
j2 ) | Email Security Update 1] Fuse Qa comendo 2015 Q1 Highlights * Q1 2015 revenue +330% vs Q1 2014, +37% from Q4 2014 * Near-term focus is to integrate recent acquisitions * Excel Micro integration plan of Q1 acquisitions * Testudo fully integrated + Nuvotera integration has begun, will be comple
Slide 12: Email Marketing Update
j2 ) | Email Marketing Update «7 campaigner * Q1 2015 revenue +63% vs Q1 2014, +20% from Q4 2014 * M&A and integration * Acquired email marketing company emailDirect in February * Contactology integration plan on schedule * Double digit organic growth * M&A pipeline represents multiple opportunities
Slide 13: Digital Media
Digital Media
Slide 14: Q1 2015 Digital Media Highlights
j2 ) | Q1 2015 Digital Media Highlights * Media business demonstrating strong fundamentals Revenue of $43.2M, +30% vs. Q1 2014 EBITDA of $13.7M, up significantly 61% vs. Q1 2014 EBITDA margin growth to 32% vs. 26% for Q1 2014 Revenue per thousand visits of $45 vs. $56 in prior year due to recent acq
Slide 15: Q1 2015 Digital Media Highlights (continued)
j2 ) | Q1 2015 Digital Media Highlights (continued) OOKLA © SPEEDTEST * Integration of Ookla into Ziff Davis continues to go well: * Total speed tests for Q1 2015 hit a new all-time high at 463M tests, 19.5% YoY increase * In February, Speedtest.net achieved its 7 billionth test since the site's cre
Slide 16: 2015 Financial Guidance
2015 Financial Guidance
Slide 17: Reconfirming 2015 Guidance (Adjusted Non-GAAP)
j2 ) | Reconfirming 2015 Guidance (Adjusted Non-GAAP) Revenues $690M - $710M EPS (1) $3.73 - $3.97 (1) Adjusted earnings per diluted share excludes share-based compensation and related payroll taxes, amortization of acquired intangibles and the impact of any currently anticipated items, in each case
Slide 18: Supplemental Information
Supplemental Information
Slide 19: Financial Metrics: Consolidated
j2) | Financial Metrics: Consolidated a 2) 3) @ j2 Global Consolidated 2015 a @ @ Qa a Total GAAP Revenues $134,124 $144,744 $153,018 $167,145 $161,253 Adjustments’ $644 $985 $213 $336 $0 Total Adjusted Non-GAAP Revenue $134,665 $145,729 $153,231 $167,481 $161,253 Adjus ted Non-GAAP Revenue By Segme
Slide 20: Financial & Other Metrics Cloud Services & Media
j2 ) | Financial & Other Metrics Cloud Services & Media Total Cloud at a2 a3, a4 at Adiusted Non-GAAP Revenue By Typ Fixed Subscriber Revenues $81,020 $96,492 589535 $93,987 596 Variable Subscriber Revenues $18,373 $19,632 S19.413 $19,273 $19,687 Subscriber Revenues $99,393 $106,125 st0g6s2 $112,644
Slide 21: GAAP Reconciliation Free Cash Flow & EBITDA
j2) | GAAP Reconciliation Free Cash Flow & EBITDA Free Cash Flow (1) ores azt4 314 ows ors Net cash provided by operating activities 937.294 354.512 340.315 943.788 845.716 Less: Purchases of property and equipment (2.936) (1.087) (3.124) (s4.074) (82.401) ‘Ace: Excess tax benefit (defict) from shar
Slide 22: Margin Contribution Adjusted Non-GAAP
j2 ) | Margin Contribution Adjusted Non-GAAP a) Q) @) (4) In Millions ara aoa asia ava ars Goud - Services Revenues $99.4 $1063 $108.9 $113.4 $1158 Gross Profit $805 $86.1 $96.8 $90.5 $027 Gross Profit % 81% 81% 80% 80% 80% EBITDA as $47.0 $524 $612 $658 $64.0 EBITDA% 47% 49% 47% 49%| 47%) Media Rev
Slide 23: GAAP Reconciliation Q1 Adjusted Non-GAAP
j2) | GAAP Reconciliation Q1 Adjusted Non-GAAP Earnings & EPS Tac Boewse (Gere) fom Adjusted our fe Anutedon ProrYeas NovGMMP $ 161,253 ee TF: - = - — $161,253 8,106 (83) aq - = (663) * aM 730 = = = BR 32959 ~ — $ 3AM 847 = oa = 813 723 = ast — $ 103 6,500 BR 8379 1 (0.950) 0,313 = — * BM 4348 a = o
Slide 24: GAAP Reconciliation EBITDA Q1 2015
j2) | GAAP Reconciliation EBITDA Q1 2015 ($ in thousands) EBITDA CONSOLIDATED CLOUD & MEDIA Q1 2015 (1) Cloud CofPorate and Cloud Subscription nter-sigment Cloud Services IPLicensng TotaCloud Media Conssidated a elimination Net income los Brot (4578 23st ea) 77,000 ca aT Plus Other experse income, n
Slide 25: Global
Global