Ziff Davis, Inc. · NASDAQ:ZD

Ziff Davis — J2 Global — Q4 2020 Earnings Presentation

25 slides from Ziff Davis's earnings presentation, Feb 12, 2021

  1. Slide 1: Fourth Quarter and Full Year 2020 Results

    F O U R T H Q U A R T E R A N D F U L L Y E A R 2 0 2 0 R E S U LT S F E B R U A R Y 1 2 , 2 0 2 1

  2. Slide 2: Safe Harbor for Forward-Looking Statements

    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 2021 Financial Guidance. Such forward-looking statements are subject to num

  3. 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 or profitability, and any related impact of U.S. or worldwide economic issues on customer ac

  4. Slide 4: Q4 2020 Consolidated Financial Snapshot

    Q4 2020 Consolidated Financial Snapshot (1) See slides 17, and 19-23 for a GAAP to non-GAAP reconciliation of adjusted gross profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by Business for Q4 2020 4 (2) Figures are adjusted non-GAAP

  5. Slide 5: FY 2020 Consolidated Financial Snapshot

    FY 2020 Consolidated Financial Snapshot (1) See slides 17, and 19-23 for a GAAP to non-GAAP reconciliation of adjusted gross profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by Business for FY 2020 5 (2) Figures are adjusted non-GAAP

  6. Slide 6: Adjusted EBITDA and Free Cash Flow

    Adjusted EBITDA and Free Cash Flow (1) (1) See slides 18 and 19 for a GAAP reconciliation of Free Cash Flow and adjusted EBITDA (2) Figures are adjusted non-GAAP 6

  7. Slide 7: Q4 2020 Financial Snapshot By Business

    Q4 2020 Financial Snapshot By Business (1) Figures are adjusted non-GAAP 7 (2) See slides 20 and 21 for a GAAP reconciliation of adjusted EBITDA for the Company as a whole and by Business for Q4 2020

  8. Slide 8: FY 2020 Financial Snapshot By Business

    FY 2020 Financial Snapshot By Business (1) Figures are adjusted non-GAAP 8 (2) See slides 22 and 23 for a GAAP reconciliation of adjusted EBITDA for the Company as a whole and by Business for FY 2020

  9. Slide 9: 2021 Financial Guidance

    (2021 FINANCIAL GUIDANCE

  10. Slide 10: 2021 Outlook (Forward-Looking Statements)

    2021 Outlook (Forward-Looking Statements) Our guidance is exclusive of the B2B backup assets and, for comparative purposes to 2020, also excludes our previously sold UK and ANZ Voice assets Cloud Services • Excludes B2B Backup and Voice UK assets • Revenue growth expected to be ~3% • Adjusted EBITDA

  11. Slide 11: 2021 Guidance (Forward-Looking Statements)

    2021 Guidance (Forward-Looking Statements) (1)(2)(3) Our annual guidance of Revenues, Adjusted EBITDA and Adjusted non-GAAP EPS FY 2020 Excluded Non-GAAP Actuals Assets Pro-Forma Revenue ($MM) $1,490 ($68) $1,422 Adjusted EBITDA ($MM) $616 ($26) $590 Adjusted Non-GAAP EPS $8.18 ($0.38) $7.80 J2 FY 2

  12. Slide 12: Pro-Forma Performance

    Pro-Forma(1) Performance EBITDA Margin 42% 40% 40% 42% 40% (1) 2017-2020 figures are pro-forma (unaudited) for the exclusion of certain assets within Voice ANZ, Voice UK, and B2B Backup; see slide 24 for reconciliation from Actuals to Pro-Forma (2) Revenue cannot be reconciled to GAAP as it is unkno

  13. Slide 13: Supplemental Information

    "SUPPLEMENTAL INFORMATION

  14. Slide 14: Consolidated Metrics

    Consolidated Metrics (1) See slide 17 for a reconciliation of adjusted non-GAAP earnings and EPS to GAAP Net Income and diluted GAAP EPS (2) See slide 18 for a definition of Free Cash Flow and reconciliation to Net Cash Provided by Operating Activities (3) See slide 19 for a definition of adjusted E

  15. Slide 15: Cloud Services & Digital Media Metrics

    Cloud Services & Digital Media Metrics 2018 2019 2020 Cloud Services Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue by Type |----------------------(in '000s)----------------------| Fixed Subscriber Revenues (1) $120,840 $123,648 $123,111 $121,350 $124,309 $140,352 $141,832 $142,420 $141,486 $14

  16. Slide 16: Return on Invested Capital (ROIC) Calculation

    Return on Invested Capital (ROIC) Calculation (3) Cumulative Cumulative Invested (3) (4) ROIC FCF / Cumulative Adjusted Free Cash ROIC FCF / IEC & Net Spend / Adjusted FCF (3) since Equity Capital (IEC (4) & Net Spend (1) EBITDA (2)(3) (3) Flow (FCF) (3) (4) IEC (4) Debt (5) (in Millions) EBITDA 200

  17. Slide 17: Q4 and FY 2020 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS

    Q4 and FY 2020 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS(1) Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in ex

  18. Slide 18: GAAP Reconciliation - Free Cash Flow

    GAAP Reconciliation - Free Cash Flow(1)(2) (1) Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefits (deficits) from share based compensation, plus IRS settlement, plus contingent consideration. Free Cash Flo

  19. Slide 19: GAAP Reconciliation - Adjusted EBITDA

    GAAP Reconciliation - Adjusted EBITDA (1)(2) (Figures in Millions) (1) Adjusted EBITDA is defined as net income plus interest and other expense, net; income tax expense; depreciation and amortization and the items used to reconcile GAAP to Adjusted Non-GAAP EPS. Adjusted EBITDA amounts are not meant

  20. Slide 20: Q4 2020 Reconciliation of GAAP to Adjusted EBITDA

    Q4 2020 Reconciliation of GAAP to Adjusted EBITDA(1) NOTE 1: Table above excludes certain intercompany allocations (1) Figures are adjusted non-GAAP 20

  21. Slide 21: Q4 2019 Reconciliation of GAAP to Adjusted EBITDA

    Q4 2019 Reconciliation of GAAP to Adjusted EBITDA(1) NOTE 1: Table above excludes certain intercompany allocations NOTE 2: Table above has been recast to remove the impact of certain expenses associated with the Corporate entity that were previously allocated to the Cloud Services and Digital Media

  22. Slide 22: FY 2020 Reconciliation of GAAP to Adjusted EBITDA

    FY 2020 Reconciliation of GAAP to Adjusted EBITDA(1) NOTE 1: Table above excludes certain intercompany allocations NOTE 2: Table above has been recast to remove the impact of certain expenses associated with the Corporate entity that were previously allocated to the Cloud Services and Digital Media

  23. Slide 23: FY 2019 Reconciliation of GAAP to Adjusted EBITDA

    FY 2019 Reconciliation of GAAP to Adjusted EBITDA(1) NOTE 1: Table above excludes certain intercompany allocations NOTE 2: Table above has been recast to remove the impact of certain expenses associated with the Corporate entity that were previously allocated to the Cloud Services and Digital Media

  24. Slide 24: Reconciliation of Non-GAAP to Pro-Forma

    Reconciliation of Non-GAAP to Pro-Forma (Figures in Thousands, except per share amounts) 2017A 2018A 2019A 2020A Stated Revenues $1,117.8 $1,207.3 $1,372.1 $1,489.6 (1) Adjustments (143.1) (95.1) (84.4) (67.9) Pro-forma Total 974.7 1,112.2 1,287.7 1,421.7 Stated EBITDA 463.0 489.5 550.3 615.7 (1) Ad

  25. Slide 25: J2 Global

    J2 GLOBAL

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