Ziff Davis, Inc. · NASDAQ:ZD

Ziff Davis — j2 Global — Q3 2013 Earnings Presentation

25 slides from Ziff Davis's earnings presentation, Nov 6, 2013

  1. Slide 1: Investors Presentation (Based on Third Quarter 2013 Results)

    > In vestors Presentation (Based on Third Quarter 2013 Results) November 5, 2013 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 2013 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: Financial Highlights

    (j2)) Financial Highlights j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE

  5. Slide 5: 2013 Results Non-GAAP

    i j2)) 03 2013 Results Non-GAAP ~~ Cloud - Services IP Licensing” Total Cloud Media j2 Consolidated In Millions $ = Margin $ Margin $ Margin $ = Margin $ Margin Revenues” $93.4 $1.0 $94.4 $32.6 $127.0 Gross Profit $76.1 81.5% $1.0 100.0% $771 81.7% $28.2 86.5% $105.3 82.9% Operating Profit” $40.0 42

  6. Slide 6: Business Cloud Services

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

  7. Slide 7: Cloud Subscription Business Progress Report

    f 2 Cloud Subscription Business Progress Report DID Based Services OeFax ® * 2012 revenue was $327MM e ® * Novemberrun-rate is $343MM, increase of over 5% ((¢ eVoice \ \ Non-DID Services * 2012 revenue was $25.6MM * Novemberrun-rate is $34.3MM, increase of over 33% go Keep!tSafe’ * KeepltSafe® +234%

  8. Slide 8: Online Backup KeepItSafe

    j2) Online Backup Ei Keep! tSafe Novemberrevenue run-rate> $12M Novemberrun-rate revenue up ~ 40% vs. Q2 2013 and > 234% vs. Q3 2012 KeepltSafe® Mobile — soft launched with select corporate customers. * Provides complete protection, sharingand governance across desktop, laptop, and mobile devices (a

  9. Slide 9: Cancel Rate

    ( i2)) Cancel Rate * Record Q3 of 2.27% * Improved 28% since comparable period in 2009 Cancel Rate") 35% 7 3.5% 3.3% 3.3% 3.1% 3.0% 30% 2009 25%: 29% =2010 ame 2.6% 2.6% 5 2.6% = 2011 2.5% 2.4% 7 m2012 2.4%) 496 23% ens 2% = 2013 2.3% ~ 2.0% + = — = — a1 a2 a4 (1) Cancet Rate is defined as cancels r

  10. Slide 10: Digital Media

    (j2)) Digital Media j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 10

  11. Slide 11: Digital Media Sources and Rankings

    Source Reviews Lab-based reviews & buying guides of all consumer electronics IT Pros QA Sites for IT developers & managers Blogs News & opinion on latest gadgets Network Small/medium sized publishers that rely on ZD for monetization Ranked #1 Ranked #1 in All Verticals a AES IGN Features News and Re

  12. Slide 12: Media Highlights

    Media Highlights Z\IFF » DAVIS + Ziff Davisis #1 in unique visitorsin all three of its categoriesin comScorein September" Traffic + IGN seta newtraffic recordin September, passing 156 million visits and 476 million page views across desktop, mobile and apps, driven by exclusive and in-depth coverage

  13. Slide 13: Media Highlights

    i2) Media Highlights Product Development + AskMenlauncheda newresponsive design site in August resultingin a doubling of time spent on site and more attractive ad units + PCMagmobile site redesigned in August resulting in a seven-fold increase in page views “) + Developedability to target audience s

  14. Slide 14: 2013 Financial Outlook

    (j2)) 2013 Financial - Outlook j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE

  15. Slide 15: Margin Contribution Non-GAAP

    (i2)) Margin Contribution Non-GAAP ~~ In Millions, ai12 242 as12_ aaa | i433 343. Cloud - Services Revenues $864 $890 $902 $905] S898 $939 $934 Gross Profit $707 $730 $741 $740] $734 $761 $761 Gross Profit % 82% 82% 82% 82%| 82% 81% 82% EBITDA” $447 $470 $471 $459] $441 $468 $464 EBITDA% 52% 53% 52%

  16. Slide 16: 2013 Guidance: Reaffirming

    i2)) 2013 Guidance: Reaffirming Revenues $510M - $535M Non-GAAP EPS (") $2.78 - $2.98 (1) Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, acquisition-related integration costs, in each case net of tax. It is anticipated that the normalized tax rate fo

  17. Slide 17: Quarterly Dividend

    2) Quarterly Dividend ~ * Record Date —- November 18% * Payment Date — December 4‘ Payment Amount: * $0.255 per Share * ~$12M of Cash Designed Not to Impact Operational or M&A Activities j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 17

  18. Slide 18: Supplemental Information

    (j2)) Supplemental Information j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 18

  19. Slide 19: Financial & Other Metrics Cloud

    Financial & Other Metrics Cloud 2012 2013 a @ @ ry a @ a Total Revenues + Sie sa __—CND Soo _s10a 768 _ 504390 Fixed Subscriber Revenues ” i $70,227 $72,187 $72,284 $72,021 $71,274 $74,556 $74,540 Variable Subscriber Revenues ‘” 14,598 15,884 47,181 18,135 18,228 19,196. 18.753 subscriber Revenues s

  20. Slide 20: Financial & Other Metrics Media & Consolidated

    (j2 Financial & Other Metrics Media & Consolidated ~ 2012 2013 a @ as as a 2 a Web Traffic Visits 30 30 a2 108 377 558 601 Pageviews 238 285 264 ue 4249 01,897 2,002 Total GAAP Revenues = Adjustments® Total Non GAAP Revenues in Thousands) Cloud Revenues Media Revenues so so sori Total Hon GAAP Reven

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

    i2)) GAAP Reconciliation Free Cash Flow & EBITDA ($ in millions) Free Cash Flow (1) arm aziz aan2 aa | arts ats Net cash provided by operating activities 38.942 $45.382 $38,193 S4a.a04] S40.048 © S8.973 $25,859 Less: Purchases of property and equiprrent (81.159) ($1.631) (80.956) (1.159 (81.933) ($4

  22. Slide 22: Q3 GAAP Reconciliation Non-GAAP Earnings & EPS

    (i2)) Q3 GAAP Reconciliation Non-GAAP Earnings & EPS ($ in thousands) THREE MONTHS ENDED SEPTEMBER 30, 2013 THREE MONTHS ENDED SEPTEMBER 30, 2012 @) @) Certain A dational acquisition (Income Tax Share-based related Share-based Benefit from GAAP Compensation exit costs Non-GAAP GAAP Compensation Prio

  23. Slide 23: GAAP Reconciliation EBITDA

    GAAP Reconciliation EBITDA ($ in thousands) EBITDA CONSOLIDATED CLOUD & MEDIA Q3 2013 (1) Tax Effect of intr pS Gout | | ea) sunt oO = a es emnent Reiecone al aa Tae a aes am Tae leona ed ; hogs ta aan thes rot SBAP to N-GAAP Fal Manure feriper fhe 3 : es 3 g 3 Emme 10a st ae aa (2) EBITDA is define

  24. Slide 24: Note Ratios & Covenants

    (j2 Note Ratios & Covenants ~ $250 Million Senior Unsecured Notes 9/30/2013 Figures in Millions Actual % of Total Total Cash & Investments $374.1 Total Debt $250.0 8.9% Total Market Capitalization $2,556.3 91.1% EBITDA -LTM 9/30/13 ® $210.0 Ratios Leverage Ratio - Debt / EBITDA LTM 1.49x Fixed Charg

  25. Slide 25: j2 eFax’ (eVoice ®&X|FuseMail’ “campaigner WMKeep\tSafe’ Wonebox Bais

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

j2 Global — Q3 2013 Earnings Presentation on 6ix