Slide 1: Investor Presentation (Based upon First Quarter 2011 Results)
j2), Global Communications e Global j2 | Communications Investor Presentation (Based upon First Quarter 2011 Results) May 5, 2011 ‘reat Scarpagmer~ tap Sele? Wencbox’ © J2 Global Communteations 2011
Slide 2: Safe Harbor for Forward-Looking Statements
j2), Global Communications 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 1985, particularly thase contained in the "2011 Guidance” slides. These forward
Slide 3: Risk Factors
j2), ciobat communications Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: 2) eeu Inabilty to sustain growth or profitability, particulary in ight of an uncertain U.S. of
Slide 4: j2 Global's CORE Strategy
j2), Global Communications j2 Global's CORE Strategy Cloud Services for Business Our Own Brands i 2 Recurring Revenue J Cloud Services for Business Efficient Operations © J2 Global Communications 2011
Slide 5: Financial Highlights
j2), Global Communications Financial Highlights
Slide 6: Q1'11 GAAP & Non-GAAP Results
j2), ciobat communications Q1'11 GAAP & Non-GAAP Results Q1 2011 GAAP Q1 2011 Non-GAAP $___Margin $___Margin Revenues “) $73.4M $83.7M Gross Profit/Margin “ (2) $57.6M 78.5% $68.5M 81.8% Operating Profit/Margin “) @ $23.1M 31.5% $38.2M 45.6% EPS ( (3) $0.66/Share $0.60/Share Free Cash Flow “ $38.2M
Slide 7: Q1 2011 Update
j2), Global Communications Q1 2011 Update
Slide 8: Q1 2011 Updates
j2), Global Communications Q1 2011 Updates Organic Net Adds of nearly 25K; a Strong Quarter Improved Retention; Cancel Rate Down to 2.6% Q1 Non-GAAP Revenue is $83.7M; 39% Y/Y and 18% Q/Q growth Record FCF of $38.2M, Despite $1.9M of Transition Exit Costs, Net of Tax Corporate Continues to Grow at a
Slide 9: Progress of Acquisitions
2 ), Global Communications Progress of Acquisitions Transition of Our Recent Acquisitions on Target: + Venali® - finish integration in Q2 + MyFax® - sales team already combined with eFax® under single management + Continue to support MyFax® brand; achieved double digit growth rate + MyFax®/My1voice™
Slide 10: Campaigner: powering customer relationships
j2), Global Communications « campaigner™ powering customer relationships Acquired December 2010 + Development, Marketing, Sales, Customer Support kept in Ottawa Simple and Easy to Use; Quick Set Up to Start Email Marketing Positioned as Best In Class + Free 24/7 customer support + Free on-boarding +
Slide 11: Cross Sell Initiatives
2), Global Communications tives im Services: Cross Sell | Focus on j2 Pret eFax®, eVoice®, Campaigner®, FuseMail®, KeepItSafe® and Onebox® + Initial focus on increasing awareness both internally and externally + Actively pursuing cross sells with every direct sale/increase awareness + Launched new j
Slide 12: 2011 Guidance
j2). Global Communications 2011 GUIDANCE
Slide 13: 2011 Guidance
j2), ciobat communications 2011 Guidance” 2011 Plan Revenues $320M to $340M (25% - 33% increase vs. 2010) Non-GAAP EPS $2.21 to $2.42 ® 2011 Guidance is exclusive in each case, where applicable, of between $9 - $11 million of share-based compensation expense, between $5 - $8 million of acquisition-r
Slide 14: Supplemental Information
j2), Global Communications Supplemental Information
Slide 15: Metrics
Metrics j2), Global Communications bani o i sy ia ta somo un seme ane ed 5m Se ee © sio-oantrees 2 sue sao yaa arama sie £0 hoegeenne i i i a ‘ancl nate a a ao 2 26% ee a 2 52) Aaa eves’ Eroanat’ Scampeigner~ AMeepisete’ Wenebox 15 © J2 Global Communications 2011
Slide 16: Computation of Free Cash Flow
j2), ciobat communications Computation of Free Cash Flow ($n millions) o2'09 a3'09 _q4'09_ai'10_a2"10 _93"10 _aa40 _an14 Nt cash provied by operating activites 520.352 $26.469 $23,850 $34.63 $12,317 $27,147 $22.23 38.153 Purch, af property & equipment (30.217) (90.767) {61-546) ($0,085) (30.495) (80
Slide 17: Non-GAAP Results & Reconciliation to GAAP
Global Communications j2 Non-GAAP Results & Reconciliation td GAAP amine etre neone aces et eamings = 009% 5 eam age snares ustanang 1) m1 201, he company mace a crane neste regan mann ees obgations os anal exe sibs. As a eu of stm URN he Company ne ‘tary te etme on eats reaing save cgi these curome
Slide 18: Reconciliation of GAAP to Non-GAAP ARPU
i2), Global Communications Reconciliation of GAAP to Non-GAAP ARPU RECONCILIATION OF GAAP TO NON-GAAP ARPU THREE MONTHS ENDED MARCH 31, 2011 (UNAUDITED, IN THOUSANDS, EXCEPT ARPU) THREE MONTHS ENDED MARCH 31 Revenues Subseriber Other Total revenue DID Based Revenue e707 10,325 77.432 Less advertisin
Slide 19: (Pe aoe Kroatat Scanpsigner Bitepisale Wonebox’ ® J2 Global Communteations
j2). —— (Pe aoe Kroatat Scanpsigner Bitepisale Wonebox’ 19 ® J2 Global Communteations 2011