Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Q1 2005 Earnings Presentation
20 slides from Ziff Davis's earnings presentation, Apr 18, 2005
Slide 1: Investor Presentation (Based upon First Quarter 2005 results)
Exhibit 99.2 www.j2global.com Investor Presentation (Based upon First Quarter 2005 results) April 18, 2005 1
Slide 2: Safe Harbor for Forward-Looking Statements
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 of 1995, particularly those contained in the slide entitled “2005 Financial Guidance”. These forward-looking s
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 in our customer base, revenue or profitability Competition in price, quality, features and geo
Slide 4: j2 Global deploys the power of the Internet to deliver business critical communication
j2 Global deploys the power of the Internet to deliver business critical communication and messaging services to individuals and corporations throughout the world. 4
Slide 5: Trademark notice
5 All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.
Slide 6: Unique Assets
Unique Assets 9.0 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,500+ cities in 23 countries on 5 continents 12.5MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 23 issued U.S. patents, and numerous pending U.S. patent applications, issued fo
Slide 7: Subscriber Profile
Subscriber Profile Vertical Markets Financial institutions Real estate Law firms & corporate legal departments Medical Government Hospitality Remote workers & “road warriors” Value Proposition Digitization (paper reduction) Security Privacy Regulatory Efficiency Cost Infrastructure replacement 7
Slide 8: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, Hotmail, Yahoo!, Google, AT&T, United Online, etc.) Sold primarily through: www.eFax.com and www.j2.com Use of proprietary Life Cycle Management (i.e. Free Paid conversions) Advertising & Calling-Party-Pays revenue supports the Fre
Slide 9: Paid Subscription Drivers
Paid Subscription Drivers Six drivers for Paid subscription additions: Subscribers coming directly to the Company’s Websites Brand awareness Search engine discovery Free-to-Paid subscriber upgrades Life Cycle Management eFax Corporate SME sales Hybrid Website and human interaction (i.e. Telesales) D
Slide 10: 1,500+ cities in 23 countries on 5 continents
1,500+ cities in 23 countries on 5 continents 137 million total US employees Current population of j2 Global-served countries: 728 million j2 Global has 8.4 million U.S. subscribers Representing 231+ million Internet users j2 Global has >600,000 international subscribers Everyone has a fax number on
Slide 11: Large Enterprise Sales
Large Enterprise Sales Increased direct-sales focus over the past 12 months on accounts with 1,000+ DIDs (telephone numbers) deployed per account New and complex regulatory compliance and security issues have focused attention within corporations towards a well- managed infrastructure for their fax
Slide 12: Product Roadmap
Product Roadmap Unified IP Document Voice Email Messaging Fax Management Services Services & Comm. Services Inbound Fax to Email Inbound VM to Email Permission-based Integrated Email, ProtoFax® Outbound Fax via Email Messenger 3.5 Voicemail management Email marketing voicemail & fax services Fax bro
Slide 13: Financial Highlights
j2),Global Financial Highlights 13 r j2 ) Global Communications, Inc.
Slide 14: Historical Revenue & Operating Income Growth
Historical Revenue & Operating Income Growth 32 consecutive quarters of Revenue growth 13 consecutive quarter of Operating Earnings growth 14
Slide 15: Cost Trends
Cost Trends * * * Reflects a reclassification of certain network operations and depreciation expenses into Cost of Revenues, which was implemented in Q1 2005, versus their historical inclusion in General & Administrative expenses. See Slide #19 for a reconciliation 15 to previously reported numbers.
Slide 16: 2005 Financial Guidance
2005 Financial Guidance Q2 Year-End 2005 2005 Revenues (millions) $34.5 – 34.8 $145 – 148 Net Earnings per Share (1) $0.42 – 0.43 $1.70 – 1.75 (1) Assumes an annual tax rate of between 25-28% and between 25.4-26.0 million diluted shares outstanding 16
Slide 17: Recent Events
Recent Events j2 Global’s network expanded to 23 countries with the introduction of local telephone numbers in Kuala Lumpur, Malaysia Local telephone numbers now available in 11 additional cities throughout France, covering such cities as Marseille, Lyon, Nice and Cannes Introduced eVoice Plus® - --
Slide 18: Metrics
2003 2004 Metrics 2005 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Fixed Subscriber Revenues $9,916 $11,177 $12,121 $13,976 $47,190 $16,021 $17,750 $19,122 $20,823 $73,716 $22,773 Variable Subscriber Revenues 4,538 5,130 5,685 5,542 20,895 6,041 7,314 7,863 8,226 29,444 8,502 Subscriber Revenues $14,454
Slide 19: Reconciliation of previously reported Cost of Revenues and G&A Expenses for 2004
Reconciliation of previously reported Cost of Revenues and General & Administrative Expenses for 2004 ($ in thousands) Q1-2004 % of Rev Q2-2004 % of Rev Q3-2004 % of Rev Q4-2004 % of Rev Total 2004 % of Rev Cost of Revenues Previously reported $ 3,640 15.9% $ 4,063 15.7% $ 4,363 15.7% $ 4,448 14.9%
Slide 20: Global
Global
J2 Global Communications — Q1 2005 Earnings Presentation on 6ix