Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Q3 2004 Earnings Presentation
11 slides from Ziff Davis's earnings presentation, Oct 19, 2004
Slide 1: Safe Harbor for Forward-Looking Statements
EXHIBIT 99.2 www.j2global.com Investor Presentation (Based upon Third Quarter 2004 results) October 18, 2004 1 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
Slide 2: j2 Global deploys the power of the Internet
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 geographic cover
Slide 3: Unique Assets and Subscriber Profile
All brands names and logos are trademarks of j2 Global Communications, Inc. in the U.S. and/or internationally. 5 Unique Assets 7.6 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,400+ cities in 20 countries on 5 continents 11.3MM+ unique DIDs worldwide in inventory P
Slide 4: Subscriber Acquisition and Paid Subscription Drivers
Efficiency Cost Infrastructure replacement 7 Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, Hotmail, Yahoo!, Google, Lycos, United Online, etc.) Sold through: www.eFax.com and www.j2.com Use of proprietary Life Cycle Management (i.e. Free Paid conversions) Advertising & Calling
Slide 5: Active Telephone Numbers (DIDs) & ARPU; Total Revenues
Active Telephone Numbers (DIDs) & ARPU $17.22 $16.95 $16.68 $15.36 $15.73 $0.05 $0.05 $0.05 $0.04 $0.04 * Defined as individual customer DIDs with greater than 4 months of continuous service (continuous service includes customer DIDs which are administratively cancelled and reactivated within a cale
Slide 6: Global Network Presence and Product Roadmap
137 million total US employees Current population of j2 Global-served countries: 703 million j2 Global has 7.6 million U.S. subscribers Representing 226 million Internet users j2 Global has 490,000 international subscribers 1,400+ cities in 20 countries on 5 continents Continuing to expand into new
Slide 7: Historical Revenue & Operating Income Growth; Quarterly Revenues
14 Historical Revenue & Operating Income Growth 30 consecutive quarters of revenue growth 11 consecutive quarter of earnings growth 15 Quarterly Revenues 2003 2004 Q3 Q4 Q1 Q2 Q3 Subscriber $17,806 $19,517 $22,062 $25,063 $26,985 Quarter-to-Quarter Growth 9.2% 9.6% 13.0% 13.6% 7.7% Advertising 681 8
Slide 8: Subscriber Revenues and Cost Trends
16 Subscriber Revenues 2003 2004 Q3 Q4 Q1 Q2 Q3 Fixed ($M) 12,121 13,976 16,021 17,750 19,122 % of Subs. Revenues 68.1% 71.6% 72.6% 70.8% 70.9% % Growth 8.4% 15.3% 14.6% 10.8% 7.7% TTM Growth 54.4% 56.3% 57.2% 58.0% Variable ($M) 5,685 5,542 6,041 7,314 7,863 % of Subs. Revenues 31.9% 28.4% 27.4% 29
Slide 9: Earnings & Free Cash Flow; 2004 Financial Guidance
Earnings & Free Cash Flow (1) (3) (2) (in millions) Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Net cash provided by operating activities $5.308 $8.542 $8.623 $10.375 $10.252 $13.044 $13.240 Purchases of property & equipment (0.300) (1.414) (0.947) (0.906) (0.319) (1.442) (1.337) Free Cash Flow
Slide 10: 2005 Financial Guidance and Recent Events
Net Earnings* Approx. 30% to 35% This guidance is a reflection of the Company’s intention to make significant investments in: Expansion of its international customer base Development and marketing of new service offerings Growth of its advertising-supported “free” base of customers * Does not reflec
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J2 Global Communications — Q3 2004 Earnings Presentation on 6ix