Slide 1: Investors Presentation Third Quarter 2015 Results
° 2 Investors Presentation j<) Third Quarter 2015 Results November 3, 2015
Slide 2: Safe Harbor for Forward-Looking Statements
j2 ) 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 2015 Financial Guidance. Such forward- looking statements are subject
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
Slide 4: Q3 2015 Results
Q3 2015 Results
Slide 5: Q3 2015 Results
j2 ) | Q3 2015 Results * Record quarterly revenue of $179M, ~17% +$25.5M vs. prior year (12) * Record non-GAAP EPS $1.04 +25% vs. prior year!) * M&A strategy continues across categories, geographies and services * Q acquisitions completed in Q3 15 Cloud Services * All-time record Cloud Services reve
Slide 6: Q3 2015 Results vs. Prior Year
j2 ) | Q3 2015 Results vs. Prior Year Total Cloud by Uni Cloud Services IP Licensing 03 2014 3.2015 03.2014 3 2015 ‘Adj. Non-GAAP Revenues“ $ 108,890 $ 125,329 $ 1177 $ 1,106 ‘Adj. Non-GAAP Gross Profit 86,798 101,414 117 1,106 Adj. Non-GAAP Operating Profit $ 48,734 $ 61,319 $ 816 $ 636 eprmpa $ 51
Slide 7: Business Cloud Services
Business Cloud Services
Slide 8: Total Revenue and Mix by Service
j2 ) | Total Revenue and Mix by Service Q3 ‘11 - Q3 ‘15 Revenue CAGR +20%, revenue increase across all core services ‘$180,000 ‘$160,000 ‘$140,000 ‘$120,000 ‘$100,000 $80,000 $60,000 $40,000 $20,000 $0 932011 Revenue Mix 21% 14% 40% 90% 57% 50% Q3 2012 3.2013 Q3 2014 Q3 2015 mCloud Connect = OtherCl
Slide 9: Record Low Quarter User Cancel Rate for Cloud Business
j2 ) | Record Low 3 Quarter User Cancel Rate for Cloud Business - Crossed 3,000,000 Customers * User cancel rate improved to record 3 quarter low of 1.98% * Primary Voice brands and Cloud Backup driving improvement 2.6% 2.5% 2.4% 2.3% 2.2% 2.1% 2.0% 1.9% 1.8% Cancel Rate") a4 m2011 = 2012 m2013 = 20
Slide 10: Cloud Connect
j2) | Cloud Connect j2).CloudConnect @QeFax’ § @eFaxCoiporate ~ & myfax “Woice «ce Wonebox <& ciTYNUMBERS * Premium fax & voice brands revenue continue to grow * eFax Q3 15 revenue +3% vs. Q3 14 and +1% vs. Q2 15 * eVoiceleReceptionist/City Numbers Q3 ‘15 revenue +7% vs Q3 ‘14 and +2% vs. Q2 ‘15 * C
Slide 11: Cloud Backup Update
i Cloud Backup Update J * Q3 ‘15 revenue up 30% vs Q3 ‘14 and +5% vs Q2 ‘15 EiKeep!tSafe’ Online Backup for Business * EBITDA reached 44% for Q3 & YTD * Completed 4 acquisitions in Q3 ‘15 livedrive. Cloud Storage for Everyone. * Acquisition of LiveVault a subsidiary of HP, blends with j2’s offerings
Slide 12: Email Security Update
j2 ) | Email Security Update | FuseMail” EXCEL 2015 Q3 Highlights * Q3 15 revenue +221% vs. Q3 ‘14, +2% vs. Q2 15 * EBITDA surpassed 40% in Q3 ‘15, continuing efficiencies via integration FuseMail awarded the 2015 Computing Security Award for its Content Security solution * Continuing focus on integ
Slide 13: Email Marketing Update
i2 ) | Email Marketing Update «7 campaigner’ Email Marketing Q3 ‘15 revenue +54% vs. Q3 ‘14, +2% vs. Q2 ‘15 Campaigner’s Customer Support Team winner of the prestigious Gold 2015 Stevie International Business Award for Customer Service Team of the Year. M&A andintegration 2 O 1 5 GOLD ° Upgrade of e
Slide 14: Digital Media
Digital Media
Slide 15: Q3 2015 Digital Media Highlights
j2 ) Q3 2015 Digital Media Highlights : * Digital media business demonstrating strong fundamentals, + Revenue of $52.3M, +21% vs. Q3‘14 * EBITDA of $20.3M, up significantly, +60% vs. Q3 “14 * EBITDA margin growth to 39% vs. 29% for Q3 14 (iss) @ (on) * Total multi-platform visits were up 70% YoY at
Slide 16: Q3 2015 Digital Media Highlights
j2 ) Q3 2015 Digital Media Highlights * Several key product launches hit in Q3 * Launched Audiences by Ziff Davis, enabling privacy-compliant targeting of aggregated, anonymous Ziff Davis audience segments by advertisers for their own programmatic ‘campaigns on any media * Launched first-ever Speedt
Slide 17: 2015 Financial Guidance
2015 Financial Guidance
Slide 18: Reconfirming Increased 2015 Guidance
j2 ) | Reconfirming Increased 2015 Guidance Revenues $690M - $724M Adjusted Non-GAAP EPS (1) $3.73 - $4.13 (1) Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles and the impact of any currently anticipated items, in each casenet of tax. Itis a
Slide 19: Supplemental Information
Supplemental Information
Slide 20: Financial Metrics: Consolidated
j2) | Financial Metrics: Consolidated a 2) 3) @ j2 Global Consolidated 2014 at a2 @3 a4 a @ @ Total GAAP Revenues $134,124 $144,744 $153,018 $167,145 $161,253 $176,038 $178,701 Adjustments’ &__ S641 598552138336 so so so Total Adjusted Non-GAAP Revenues |Z $134,665 $145,729 $153,231 $167,481 $161,25
Slide 21: Financial & Other Metrics Cloud Services & Media
j2 ) | Financial & Other Metrics Cloud Services & Media at a2 @B 77 an a2 a3 ‘Adjusted Non-GAAP Revenue By Type Fixed Subscriber Revenues 981,020 $86,492 $89,635 $03.67 $95,097 $102,437 $103957 Variable Subscriver Revenues $18,373 $19,633 $1913 _$19273 $19,587 $21,368 921364 Subscriber Revenues $99,
Slide 22: GAAP Reconciliation Free Cash Flow & EBITDA
j2) | GAAP Reconciliation Free Cash Flow & EBITDA (S in millions) Free Cash Flow (1) ant ozs casts eta arts 245 315 Net cash provided by operating activities, 337.294 $64.512 $40.315 sés.110 S45 716 51.204 $63.21 Less: Purchases of property and equipment (52.936) (1.087) ($3124) (s4.074) (92401) (s4
Slide 23: Margin Contribution Adjusted Non-GAAP
j2 ) | Margin Contribution Adjusted Non-GAAP In Wiions ar aztg atg aaa aris 035 Cloud - Services Revenues $99.4 $1063 $108.9 S134 $1158 $1239 $1253 Gross Profit $805 $861 $85.8 $905 $927 $1002 S014 Gross Proft% 81% 81% 80% 80% 80% 81% 81% EBITDA(?2° $47.0 $521 $51.2 558 $540 $59.8 $63.4 EBITDA% 47%
Slide 24: GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS
j2)| GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS ($ in thousands) THREE NONTHS ENDED SEPTBIBER 0 015 THREE MONTHS ENDED SEPTBIBER 30 014 @ © Q © ponistor Poona Aus. odor (ad Texter reeks Tax Saetst higain best Gast fon Adisted Saedaet Inegaion © Gareth fom Adusted GMP Comensim Goss Coss
Slide 25: GAAP Reconciliation EBITDA Q3 2015
j2) | GAAP Reconciliation EBITDA Q3 2015 ($ in thousands) EBITDA CONSOLIDATED CLOUD & DIGI MEDIA Q3 2015 (1) cut coponteans RE eee em (ome co, sumption hereon eres mB Vice |e elimination Laine |Net income (loss) 40,296 (3,905) 36,381 (730) (35,661 4,714 ‘7,375, Cine eens come ost es 2 ewe 1086 eres
Slide 26: Global
Global