Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Pacific Growth Equities Top Picks in Tech Conference (November 2005)
19 slides from Ziff Davis's conference presentation, Nov 15, 2005
Slide 1: Pacific Growth Equities Top Picks in Tech Conference
Pacific Growth Equities Top Picks in Tech Conference (Based upon Third Quarter 2005 results) November 15, 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 desired locations Enactment of burdensome telecommunications o
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 10.2 million subscribed telephone numbers (DIDs) Global advanced messaging network 2,000+ cities in 26 countries on 5 continents 14.2MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 23 issued U.S. patents, and numerous pending U.S. patent applications, issued f
Slide 6: Breadth of Network: 2,000+ cities
2,000+ cities in 26 countries on 5 continents Source: US Census Bureau (2003), www.internetstats.com 2005 and j2 Global Current population of j2 Global- served countries: 826 million Representing 349+ million Internet users j2 Global has only ~ 746,000 international subscribers 137 million total US
Slide 7: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, MSN, Yahoo!, Google, CareerBuilder, New York Times, etc.) Sold primarily through: www.eFax.com and www.j2.com Use of proprietary Life Cycle Management ( e.g. Free Paid conversions) Advertising & Calling-Party-Pays revenue supports
Slide 8: Paid Subscription Drivers
Paid Subscription Drivers Six Drivers for Paid Subscription additions: Subscribers coming directly to the Company’s Websites/Telesales Brand awareness Search engine discovery Free-to-Paid subscriber upgrades Life Cycle Management eFax Corporate SME sales Hybrid Website and human interaction (i.e. Te
Slide 9: 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 10: Low and Declining Individual Paid SAC Cost
Low and Declining Individual Paid SAC Cost Analytical Approach to Marketing (ROI Based) Spend with Breadth of Vendors Key Long-Term Vendor Relationships Strong Direct to Website Customer Acquisition
Slide 11: j2 Global
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Slide 12: Historical Revenue & Operating Earnings Growth
34 consecutive quarters of Revenue growth 15 consecutive quarter of Operating Earnings growth Historical Revenue & Operating Earnings Growth
Slide 13: 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 #23 for a reconciliation to previously reported numbers.
Slide 14: Financial Guidance
Financial Guidance (Reaffirmed as of November 15, 2005) (1) Assumes an effective annual tax rate of 27% and 25.5 million fully diluted shares outstanding $0.50 – $0.54 $39 – $41 Q4 ~30% Net Earnings per Share (1) ~30% Revenues (millions) Growth Rate
Slide 15: j2 Global
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Slide 16: Revenues, DIDs, Financials
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Slide 17: Reconciliation of Previously Reported Cost of Revenues and G&A
Reconciliation of Previously Reported Cost of Revenues and General & Administrative Expenses for 2004 ($ in thousands)
Slide 18: 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 19: j2 Global
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