Ziff Davis, Inc. · NASDAQ:ZD

Ziff Davis — j2 Global — Q1 2014 Earnings Presentation

26 slides from Ziff Davis's earnings presentation, May 9, 2014

  1. Slide 1: Investors Presentation (Based on First Quarter 2014 Results)

    > In vestors Presentation (Based on First Quarter 2014 Results) May 8, 2014 j> @ekax’ «Voice i’ “campaigner BiKeepltSafe’ Bonebox Baie

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

    (i2)) 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 2014 Financial Guidance. Such forward- looking statements are subje

  3. 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

  4. Slide 4: Q1 2014 Highlights

    ( i2)) Q1 2014 Highlights j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE

  5. Slide 5: Q1 2014 Results

    j2)) Q1 2014 Results epiTDA Les Le : Depreciation & Amortization Pre-Tax Income Adjusted Non-GAAP Net Income terest & Other Expense (Income), Net Earnings Per Share"! : Cloud - Services IP Licensing" Total Cloud Media j2 Consolidated In Millions $ Margin $ Margin $ Margin $ Margin $ Margin IRevenues

  6. Slide 6: Business Cloud Services

    ( j2)) Business Cloud Services j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE

  7. Slide 7: Cloud Subscription Revenue Growth by Service

    Cloud Subscription Revenue Growth by Service Current annualized run-rate versus Q1 2013: Oek © ° Fax/Voice +4% * Key growth areas US, Japan, UK & Corporate . e ‘ Voice * Online Backup+900% * High growth organically and acquisitions * Hosted Email +69% og Keep! ‘Safe’ * Enteredthe UK marketin late 20

  8. Slide 8: Globalization of j2 Cloud & Media

    j )) Globalization of j2 Cloud & Media @QeFax’ “e UK Expansion * Run-rate Revenue +$60M & CITYNUMBERS * +3.5x growthin pastyear oa Keep!tSafe’ * 100+employees livedrive. * Services: Fax/ Voice/ Online Backup / Hosted Email / Media Australia/New Zealand Wicritical * Run-rate Revenue~$24M ZIFF * 1.5xg

  9. Slide 9: Online Backup

    (j2)) Online Backup EiKeep!tSafe sivedrive. * Current annual revenue run-rate>$50.0M * Q1actuals +480% versus Q1 13 & +160% versus prior quarter * Recent Norwegian acquisition expands global presence into Norway and Sweden increasing online backup business into 9 countries * Marketleaderin 6 of the

  10. Slide 10: Record Cancel Rate

    Record Cancel Rate * Record Low Q1 2.34% * Improved 32% versus comparable peri in 2009 Cancel Rate 3.0% Q3 aa ™ 2009 = 2010 = 2011 2012 m= 2013 2014 (1) Cancel Rate is definadas cancels related to individual customer DIDs with greater than 4 months of continuous service(continuousserviceincludes cus

  11. Slide 11: Digital Media

    (j2)) Digital Media j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 1

  12. Slide 12: Q1 2014 Media Highlights

    Ss edia Highlights ZIFF ‘i2) Q1 2014 Media Highlight DAVIS Visits to owned and operated sites (IGN, AskMen, PCMag Group) grew 57.5% YoY to 594M and Page views grew 61.8% to 2.0 billion in Q1 (2) IGN launched new Android app in March; 3.5M downloads to date (Android & iOS) °) For March, IGN apps repr

  13. Slide 13: Q1 2014 Media Highlights continued

    ‘j2)) Q1 2014 Media Highlights continued * PCMag.com site redesign to improve usability, engagement and advertising environment * AskMen’s February page views topped 162M, the strongest month since acquisition * AskMen Germany (de.askmen.com) March launch; 1stlaunch of new international platform ° P

  14. Slide 14: 2014 Financial Outlook

    (j2)) 2014 Financial _ Outlook j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE

  15. Slide 15: 2014 Guidance Reaffirming

    j2 2014 Guidance Reaffirming Revenues $580M - $600M Adjusted Non-GAAP EPS (1) $3.23 - $3.47 (1) Adjusted Non-GAAP earnings per diluted share for 2014 excludes share-based compensation of between $10.and $12million, amortization of ‘acquired intangibles and the impact of any currently unanticipated i

  16. Slide 16: Share Repurchase / Quarterly Dividend

    . 2) Share Repurchase / Quarterly Dividend * Record Date — May 19% * Payment Date — June 34 Payment Amount: * $0.27 per Share * ~$12M of Cash * 12.5% increase versus the dividend paid in Q2 2013 Designed Not to Impact Operational or M&A Activities j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe

  17. Slide 17: Supplemental Information

    (j2)) Supplemental Information j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 17

  18. Slide 18: Financial & Other Metrics Cloud

    (j2 Financial & Other Metrics Cloud 2012 23 14 at az a. a at a @ a at Total GAAP Revenues se6652 $e9465 $93,285 802322 sen739 st0g768 $94,280 © $96,207 $100,320 ‘Adustment so 2 so so so so eI so seat ‘Total Adjusted Non-GAAP Revenues $06,652 $9465 993,205 ———$02322 $00739 $108,768 $94,300 $96,207 ‘$

  19. Slide 19: Financial & Other Metrics Media & Consolidated

    (j2 Financial & Other Metrics Media & Consolidated ~ 2012 2013 2014 a @ a ar a a a ao at Web Traffic Visits 2 80 80 2 a7 558 601 Pagevie = 238 285 1289018872002, 2t97 2,021 Total GAAP Revenues $06,652 $89,465 $93,285 $102,033. $113,617 $141,361 $127,788 $138,035 $134,124 Adjustments so so so so (1,3

  20. Slide 20: ott ove 2ovs ove

    ott ove 2ovs ove oe ea ae we ToatAdpsted Hon GAAP Revenues #8370 BATE BEE _SaO _waaea mame wins wou way oane _sagw wer WIEN Vaviate Subscribe Revenues 15309 10078 15.257 1492 14508 15.006 17,181 18,195 10.228 19,100 18.75 108.454 18372 Subserber Revenues 8 $8194 $85,298 S35.22 $04,165 — $84825 $85,0

  21. Slide 21: GAAP Reconciliation Free Cash Flow & EBITDA

    (j2 )) GAAP Reconciliation Free Cash Flow & EBITDA ($ in millions) Free Cash Flow (1) er ae asta aete | ars arts ass ats | ar Net cash provided by operating activites seasiz seoas2 sas.tes sae.aos| s4o.oes sege72 sonses sea.asa| sav 294 Less: Purchases of property and aqubment (31.189) (S1821) (S098

  22. Slide 22: Segment Margin Contribution (Adjusted Non-GAAP)

    In Millions a2 Margin Contribution Adjusted Non-GAAP azn 312 aa | arts ozs astsaats | ants Cloud - Services Revenues $263 $890 $903 $905] se99 $939 $934 sos6| so94 Gross Profit $707 $730 $741 $740] $734 $761 $761 S769] S805 Gross Profit % 82% «82% += 82% © «82% «82% © 81% «= 82% 81%] BM eEpiTpa” $44

  23. Slide 23: Q1 GAAP Reconciliation Adjusted Non-GAAP Earnings & EPS

    ‘i2)) Q1 GAAP Reconciliation Adjusted Non-GAAP Earnings & EPS ($ in thousands) [THREE MONTH'S eID=D MARCH 91,2014 THREE MONTHS EDED MARCH 31,2019 2 a @ peau: astral pecuttien () rete Taemece mates Shweimsed Igyain (3) (Gena) fom Adjusted Shaeteed negation (2) Added a sma aR — sees 5 sta67 = wy 8 as

  24. Slide 24: GAAP Reconciliation EBITDA Q1 2014

    f j2 GAAP Reconciliation EBITDA Q1 2014 ($ in thousands) EBITDA CONSOLIDATED CLOUD & MEDIA Q1 2014 () Cloud Cloud Sa @ Cloud Media ‘Subtotal Inter-segment Consolidated Subscription IP Licensing Transactions IWetineome (ross) aes @ Bae cx ET s Bie lother expense (income), net 28 o 2 (aD eg) = 19) Int

  25. Slide 25: Note Ratios & Covenants

    (j2 Note Ratios & Covenants ~ $250 Million Senior Unsecured Notes 3/31/2014 Figures in Millions Actual % of Total Total Cash & Investments $315.1 Total Debt $250.0 10.5% Total Market Capitalization ‘”” $2,1228 89.5% EBITDA -LTM 3/31/14 $217.4 Ratios Leverage Ratio - Debt / EBITDA LTM 1.15x Fixed Cha

  26. Slide 26: j2 eFax’ (eVoice ®&X|FuseMail’ “campaigner WMKeep\tSafe’ Wonebox Bais

    j2 eFax’ (eVoice ®&X|FuseMail’ “campaigner WMKeep\tSafe’ Wonebox Bais

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