Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Merrill Lynch IT Service & Software Conference (February 2006)
17 slides from Ziff Davis's conference presentation, Feb 2, 2006
Slide 1: Merrill Lynch IT Service & Software Conference
EXHIBIT 99.1 www.j2global.com Merrill Lynch IT Service & Software Conference (Based upon Third Quarter 2005 results) February 2, 2006 1
Slide 2: Safe Harbor for Forward-Looking Statements
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 1995, particularly those contained in the slide entitled “Financial Guidance”. These forward-looking statem
Slide 3: Risk Factors
Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geo
Slide 4: All brand names and logos are trademarks of j2 Global
All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 4
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
Breadth of Network 2,000+ cities in 26 countries on 5 continents 137 million total US employees Current population of j2 Global- j2 Global has only 9.5 million U.S. subscribers served countries: 826 million Representing 349+ million Internet users j2 Global has only ~ 746,000 international subscribe
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 t
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: Financial Highlights
j2),Global Financial Highlights j2) Global Communications, Inc,
Slide 10: Historical Revenue & Operating Earnings Growth
Historical Revenue & Operating Earnings Growth 34 consecutive quarters of Revenue growth 15 consecutive quarter of Operating Earnings growth 10
Slide 11: 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 11 to previously reported numbers.
Slide 12: Financial Guidance
Financial Guidance (Reaffirmed as of February 2, 2006) Q4 2006 2005 Growth Rate Revenues (millions) $39 – $41 ~30% Net Earnings per Share (1) $0.50 – $0.54 ~30%(2) Re Revenue and Net Earnings per Share for Q4 2005 Not Expected to be in Upper End of Range. Net Earnings per Share Subject to Finalizing
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Metrics
Metrics 2003 2004 2005 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Fixed Subscriber Revenues $9,916 $11,177 $12,121 $13,976 $16,021 $17,750 $19,122 $20,823 $22,773 $23,756 $25,229 Variable Subscriber Revenues 4,538 5,130 5,685 5,542 6,041 7,314 7,863 8,226 8,502 10,323 11,258 Subscriber Revenues $14,454 $16,30
Slide 15: Reconciliation of Previously Reported Cost of Revenues and G&A Expenses for 2004
Reconciliation of Previously Reported Cost of Revenues and General & Administrative Expenses for 2004 ($ in thousands) Q3-2004 % of Rev Q4-2004 % of Rev Cost of Revenues Previously reported $ 4,363 15.7% $ 4,448 14.9% Add: Certain network operations and depreciation expenses 1,092 1,128 Adjusted Cos
Slide 16: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) (1,2) Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Net cash provided by operating activities $5.308 $8.542 $8.623 $10.375 $10.252 $13.044 $13.240 $14.785 $13.762 $15.227 $15.951 Purchases of property & equipment (0.300) (1
Slide 17: Global
Global
J2 Global Communications — Merrill Lynch IT Service & Software Conference (February 2006) on 6ix