Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Jefferies 3rd Annual Media & Communications Conference (September 2005)
20 slides from Ziff Davis's conference presentation, Sep 19, 2005
Slide 1: Jefferies 3rd Annual Media & Communications Conference
Jefferies 3 rd Annual Media & Communications Conference (Based upon Second Quarter 2005 results) September 19, 2005 www.j2global.com
Slide 2: Safe Harbor for Forward-Looking Statements
Future operating results Subscriber growth and retention Earnings growth and expectations New products, services and features Corporate spending Liquidity Network capacity and coverage Regulatory developments Taxes Certain statements in this presentation constitute “forward-looking statements” withi
Slide 3: Risk Factors
Risk Factors Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geographic coverage Inability to obtain telephone numbers in sufficient quantities on acceptable terms in desirable locations Enactment of burdensome telecommunications
Slide 4: Trademark notice
All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.
Slide 5: Unique Assets
Unique Assets 9.3 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,500+ cities in 25 countries on 5 continents 13.6MM+ 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 6: 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 , www.j2.com and www.evoice.com Use of proprietary Life Cycle Management (i.e. Free Paid conversions) Advertising & Calling-Party-Pays revenue
Slide 7: 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 8: Historical Revenue & Operating Income Growth
33 consecutive quarters of Revenue growth 14 consecutive quarter of Operating Earnings growth Historical Revenue & Operating Income Growth
Slide 9: j2 Global
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Slide 10: Paid DIDs Increasing at a 40% Annual Rate
- Paid DIDs Increasing at a 40% Annual Rate Average Pages per Paid DID Stable Message Delivery Each Business Day on Average Regular Interaction with Customer j2 Global Fax Usage Trend
Slide 11: Each Delivery Reinforces Customer Awareness
Each Delivery Reinforces Customer Awareness Branding/Word of Mouth Largest New DID Contributor Upsell Messages Refreshed and Targeted New Services Lead to Increased Usage and Loyalty Training Raises Awareness of Less Used Features eFax Delivery Page
Slide 12: eFax/eVoice Upsells and Upgrades
eFax/eVoice Upsells and Upgrades eVoice/eFax Free to Paid Easy Access to Customer Support Upgrade to eFax Pro eFax Corporate Help Tailored Marketing Messages
Slide 13: Low and Declining Trend in SAC
Low and Declining Trend in SAC Analytical Approach to Marketing (ROI Based) Spend with Breadth of Vendors Key Long-Term Vendor Relationships Strong Direct to Website Customer Acquisition
Slide 14: j2 Global
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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 (and is on-going), versus their historical inclusion in General & Administrative expenses. See Slide #19 for a reconciliation to previously re
Slide 16: 2005 Financial Guidance
2005 Financial Guidance (Reaffirmed as of September 19, 2005) (1) Assumes an effective annual tax rate of 27% and 25.5 million fully diluted shares outstanding (2) Before gain on the sale of Oasis Semiconductor. $0.48 – 0.49 $37.4 – 38.0 Q3 $1.82 – 1.87 Net Earnings per Share (1,2) $145 – 148 Revenu
Slide 17: Metrics
Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Fixed Subscriber Revenues $9,916 $11,177 $12,121 $13,976 $16,021 $17,750 $19,122 $20,823 $22,773 $23,756 Variable Subscriber Revenues 4,538 5,130 5,685 5,542 6,041 7,314 7,863 8,226 8,502 10,323 Subscriber Revenues $14,454 $16,307 $17,806 $19,517 $22,062 $25,063
Slide 18: Reconciliation of previously reported Cost of Revenues and G&A
Reconciliation of previously reported Cost of Revenues and General & Administrative Expenses for 2004 ($ in thousands) Q2-2004 % of Rev Q3-2004 % of Rev Q4-2004 % of Rev Cost of Revenues Previously reported 4,063 $ 15.7% 4,363 $ 15.7% 4,448 $ 14.9% Add: Certain network operations and depreciation ex
Slide 19: Computation of Free Cash Flow
(1) In Q4 2003, excludes benefit of $9.5 million to record the reversal of certain valuation allowances of our deferred tax assets. (2) Prior to Q4 2003, the Company accrued tax expense at the rate of 5% or less. (3) Net cash provided by operating activities, less purchases of property & equipment.
Slide 20: j2 Global
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