Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Raymond James Institutional Investors Conference 2005
20 slides from Ziff Davis's conference presentation, Mar 7, 2005
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference (Based upon Fourth Quarter and Year-End 2004 results) March 7, 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: j2 Global deploys the power of the Internet
j2 Global deploys the power of the Internet to deliver business critical communication and messaging services to individuals and corporations throughout the world.
Slide 5: Trademark notice
All brands names and logos are trademarks of j2 Global Communications, Inc. in the U.S. and/or internationally.
Slide 6: Unique Assets
Unique Assets 8.7 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,500+ cities in 22 countries on 5 continents 11.9MM+ 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 Efficiency Cost Infrastructure replacement
Slide 8: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, Hotmail, Yahoo!, Google, AT&T, United Online, etc.) Sold 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 Free base Sm
Slide 9: Paid Subscription Drivers
Paid Subscription Drivers Five 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)
Slide 10: Current population of j2 Global-served countries
Current population of j2 Global-served countries: 717 million Representing 226+ million Internet users j2 Global has 554,000 international subscribers 137 million total US employees j2 Global has 8.2 million U.S. subscribers Everyone has a fax number on their business cards… but the smart ones get t
Slide 11: International Traction
International Traction Website content, sales and support in English, Spanish, German, French and Dutch Non-U.S. Website visits grew by 29% between Q4 2003 and Q4 2004 Expansion of the “Free” model throughout Europe 460,000 telephone numbers assigned in the UK, France, Germany and the Netherlands Lo
Slide 12: Product Roadmap
Product Roadmap Inbound Fax to Email Outbound Fax via Email Fax broadcasting Secure fax OCR PDF delivery Fax storage/archive Smart Caller ID New notification methods Voice Services Inbound VM to Email Voicemail management Telephone access Conference Calling Enhanced voicemail Call screening Call for
Slide 13: j2),Global
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Slide 14: Historical Revenue & Operating Income Growth
31 consecutive quarters of Revenue growth 12 consecutive quarter of Operating Earnings growth Historical Revenue & Operating Income Growth
Slide 15: Margins as percentage of revenue
j2),Global 80% Gross Margin 70% 60% 50% ° 41.4% 43.5% 42.6% 43.0% AA,0%e— 40% — : Operating Margin (Percentage of Total Revenue) 30% G&A 20% ol a ii, ales & Marketing or Engingring 4038 Qu‘o4 Q2'04 Qe'04 2) wan canminsanncine
Slide 16: Earnings & Free Cash Flow
(1) (2) Earnings & Free Cash Flow (1) 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
Slide 17: 2005 Financial Guidance
2005 Financial Guidance (1) Assumes an annual tax rate of between 25-28% and diluted shares of 25.8 million as of January 31, 2005 $0.39 $32.2 Q1 $1.70 - 1.75 Net Earnings per Share (1) $145 - 148 Revenues (millions) Year-End (Reaffirmed 3/07/05)
Slide 18: j2),Global
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Slide 19: Metrics
Metrics Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Fixed Subscriber Revenues $9,916 $11,177 $12,121 $13,976 $47,190 $16,021 $17,750 $19,122 $20,823 $73,716 Variable Subscriber Revenues 4,538 5,130 5,685 5,542 20,895 6,041 7,314 7,863 8,226 29,444 Subscriber Revenues $14,454 $16,307 $17,806 $19,517 $68,084
Slide 20: Global
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