Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Raymond James & Associates 27th Annual Institutional Investors Conference (March 2006)
22 slides from Ziff Davis's conference presentation, Mar 7, 2006
Slide 1: Raymond James & Associates 27th Annual Institutional Investors Conference
www.j2global.com Raymond James & Associates 27th Annual Institutional Investors Conference (Based upon Fourth Quarter 2005 results) 1 March 7, 2006
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: Trademark notice
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: Core j2 Global Assets
Core j2 Global Assets 11.2 million subscribed telephone numbers (DIDs) Global advanced messaging network 2,000+ cities in 26 countries on 5 continents 14.6 MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 25 issued U.S. patents, and numerous pending U.S. patent applications,
Slide 6: 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 , www.j2.com, www.onebox.com and www.evoice.com Use of proprietary Life Cycle Management (e.g. Free Paid conversions) Advertising & Call
Slide 7: 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 Accounts for up to 50% of monthly paid DID signups Free-to-Paid subscriber upgrades Life Cycle Management eFax Corporate SMB s
Slide 8: International Update
j2),Global International Update 8 j2 ) Global Communications, Inc.
Slide 9: Aggressive International Expansion
Aggressive International Expansion 2003 2004 2005 29K Paid DIDs 39K Paid DIDs 71K Paid DIDs 161K Free DIDs 549K Free DIDs 966K Free DIDs English Only Launched local- Full Web, Customer US $ Only language web sites in Service & Telesales 60 Area Codes UK, NL, FR, DE, SP, Support in English, CA Dutch,
Slide 10: 2005 Results & 2006 Goals
2005 Results & 2006 Goals Rapid Growth in 2005 71K paid DIDs (+82% vs. 2004) 966K free DIDs (+76% vs. 2004) International has meaningful upside potential Accelerate Expansion in EU Continue to penetrate in Western Europe Network and marketing New market development in Eastern Europe Network, Localiz
Slide 11: Corporate Update
j2),Global Corporate Update 52), ciobat communications, nc.
Slide 12: Corporate Update
Corporate Update Enterprise Sales 18 Enterprise accounts with 1,000+ DIDs – all under annual or multi-year contracts Largest account has more than 10,000 DIDs provisioned 8 “Fortune 100” accounts Pipeline: 68 qualified 1,000+ DID opportunities, of which 14 are international Lower cancellation rate m
Slide 13: Financial Highlights
j2),Global Financial Highlights j2 ) Global Communications, Inc.
Slide 14: Historical Revenue & Operating Earnings Growth
Historical Revenue & Operating Earnings Growth 35 consecutive quarters of Revenue growth 16 consecutive quarter of Operating Earnings growth 14
Slide 15: 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 #20 for a reconciliation 15 to previously reported numbers.
Slide 16: Financial Guidance
Financial Guidance (Reaffirmed 3/7/06) Q1 Fiscal Year 2006 2006 Revenues (millions) $41.3 – $42.1 $181 - $191 Net Earnings per Share (1,2) $0.53 – $0.55 $2.34 - $2.46 (1) Assumes an effective annual tax rate of 27% and 25.8 million fully diluted shares outstanding (2) Before stock-based compensation
Slide 17: Goals for 2006
Goals for 2006 Further Penetrate North America with DID Based Offerings Grow International Revenues at a Greater Rate than the Company Lay Foundation for Additional Revenue in Asia Launch “Bring Your Own Number Service” in US Evolve eVoice Product Suite Enhance OneBox Service Offering Refine Product
Slide 18: Supplemental Information
Supplemental Information 18
Slide 19: Metrics
Q1 Q2 2004 Q3 Q4 Total Q1 Q2 2005 Q3 Q4 Metrics Total Fixed Subscriber Revenues $16,021 $17,750 $19,122 $20,823 $73,716 $22,773 $23,756 $25,229 $26,963 $98,721 Variable Subscriber Revenues 6,041 7,314 7,863 8,226 29,444 8,502 10,323 11,258 10,901 40,984 Subscriber Revenues $22,062 $25,063 $26,985 $2
Slide 20: Reconciliation of previously reported Cost of Revenues and G&A Expenses for 2004
Reconciliation of previously reported Cost of Revenues and General & Administrative Expenses for 2004 ($ in thousands) Q1-2004 % of Rev Q2-2004 % of Rev Q3-2004 % of Rev Q4-2004 % of Rev Total 2004 % of Rev Cost of Revenues Previously reported $ 3,640 15.9% $ 4,063 15.7% $ 4,363 15.7% $ 4,448 14.9%
Slide 21: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Net cash provided by operating activities $10.252 $13.044 $13.240 $14.785 $13.762 $15.227 $15.951 $19.449 Purchases of property & equipment (0.319) (1.442) (1.337) (3.883) (2.473) (1.420) (2.433) (2.601) (1) Free Cash Flow $9.933 $11.602 $11.903 $10.902
Slide 22: j2 Global
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