Slide 1: Investors Presentation Second Quarter 2016 Results
° 2 Investors Presentation J Second Quarter 2016 Results Global August 3, 2016
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 2016 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: * Inability to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and
Slide 4: Q2 2016 Results
Q2 2016 Results
Slide 5: 2016 Q2 Accomplishments
j2 ) | 2016 Q2 Accomplishments Q2 ‘16 Consolidated Results * Record Second Quarter Revenue $212M, +20.3% vs Q2 2015 * Q2 adjusted EBITDA) $97.5M, +22.5% vs Q2 2015 * Executing M&A investment to further improve market position * 6 acquisitions completed in Q2 2016, 5 Cloud and 1 Media Cloud Segment *
Slide 6: j2 Global Consolidated
j2 Global Consolidated
Slide 7: Q2 2016 Results vs. Prior Year
j2 ) | Q2 2016 Results vs. Prior Year ($ in thousands) Total Cloud by Unit J ticensing | 02. 2015, 22016 2 2015 2.2016 2 2015 022016 2 2015 02.2016 Revenues $ 99273 $ 92,858 © § 34,632 $ 48509 «= $4283 «= § 1093 | § 125,188 § 142,460 ‘Adj, Non-GAAP Gross Profit 75325 7,081 24534 35669 1,283 1,093, 1
Slide 8: Business Cloud Services
Business Cloud Services
Slide 9: Q2 2016 Cloud Connect (Fax/Voice) Highlights
j2 ) | Q2 2016 Cloud Connect (Fax/Voice) Highlights Q2 16 Revenue of $93M, +4% vs. Q2 ’15, annual run rate ~$375M * Fax Revenue of $77M, +1% vs. Q2 ‘15, led by premium brands and corporate fax * Fax Revenue represents 36% of consolidated Q2 ‘16 Revenue and ~44% of consolidated adjusted EBITDA(2103)
Slide 10: Q2 2016 Cloud Backup Highlights
i2 ) | Q2 2016 Cloud Backup Highlights * Revenue of $29M, +77% vs Q2 15, +6% vs. prior quarter * Adjusted EBITDA of $15.5M, +125% vs.Q2 15 * Adjusted EBITDAmargin 53% vs. +42% in Q2 15 FRONTSAFE * Acquired Frontsafe in July, expanded our KeepitSafe brand into Denmark * Nordic revenue increased by 67
Slide 11: Q2 2016 Email Highlights
j2 ) | Q2 2016 Email Highlights Email Security * — Q2 16 Revenue of $12M, #2% vs. Q2 15 * Q26 adjusted EBITDA) of $4M, +9% vs. Q2 15 * Nordic Update * Double-digit revenue growth in Nordics * — Cost savings resulting from Datacenter and office consolidation Email Marketing + Q246 Revenue of $6.3M, #
Slide 12: Digital Media
Digital Media
Slide 13: Q2 2016 Digital Media Highlights
j2 ) Q2 2016 Digital Media Highlights * Digital media business demonstrating strong fundamentals * Q2‘16 Revenue of $69M, +36% vs. Q2'15 * Q2‘16 adjusted EBITDA'2) of $26M, +37% vs. Q2°15 * Total multi-platform visits +25% YoY at 1.2B ® * Performance Marketing (CPC, CPA, CPL, CPI) grew 101% vs. Q2 4
Slide 14: Q2 2016 Digital Media Highlights
j2 ) Q2 2016 Digital Media Highlights * IGN's distributed video strategy demonstrating strong growth (") * Total video views across all IGN platforms were up 84% YoY to 843M + IGN grew subscribers to its YouTube channels by 28% YoY to 8.9M total Ie P i i subscribers IGN LIVE + IGN’s Snapchat channel
Slide 15: 2016 Financial Guidance
2016 Financial Guidance
Slide 16: Reconfirming 2016 Guidance
j2 ) | Reconfirming 2016 Guidance Revenues $830M - $860M Adjusted Non-GAAP EPS") $4.70 - $5.00 (1) Figures are adjusted Non-GAAP. (2) Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles and the impact of any currently anticipated items, in each
Slide 17: Supplemental Information
Supplemental Information
Slide 18: Financial Metrics: Consolidated
j2) | Financial Metrics: Consolidated j2 Global Consolidated ai a2 as a4 a a2 Total Revenues | $161,253 $176,038 $178,701 $204,825 $200,502 $211,800 Revenue By Segment 5 Cloud Revenues 3 $118,061 $125,188 $126,436 $134,953 $138,139 $142,460 Digital Media Revenues E _ 843,192 $50,850 $62,265 $60,870
Slide 19: Financial & Other Metrics Cloud & Media
j2)| (a) Q) 3) @) (3) Financial & Other Metrics Cloud & Media 2015 2016 __a @ a @ at a2 Revenue bros i Fited Subscriber Revenues | 996,097 $102,437 $103987 $112,428 $118.498 $117,199 Variable Subscriver Revenues | _sies67 924,268 921,264 $21,384 $21,483 $24,195 Subscriber Revenues | Gr16,7e4 $123,80
Slide 20: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
i2 GAAP Reconciliation Free Cash Flow & Adjusted EBITDA ($ in millions) Free Cash Flow (1) ants az1s 0315 ass atts 0716 Net cash provided by operating activities 45.716 $51,894 $50,983 80.488 $64,524 867.528 Less: Purchases of property and equipment (2.401) (64.554) (4.972) (95.370) 64.221) (4.868)
Slide 21: GAAP Reconciliation Q2 2016 Adjusted Non-GAAP Earnings & EPS
i2 GAAP Reconciliation Q2 2016 Adjusted Non-GAAP Earnings & EPS ($ in thousands) THREE MONTHS ENDED JUNE 30, 204 @ @ Acquistion @ Additonal a related 3) IRS Tax Expense Share-based Integration Interest Consuting —«(S)_—=(Benefi) fom Adjusted GAAP Compensation Casts Cost «= Fee © Amorization Prior Ye
Slide 22: GAAP Reconciliation Q2 2015 Adjusted Non-GAAP Earnings & EPS
i2 GAAP Reconciliation Q2 2015 Adjusted Non-GAAP Earnings & EPS ($ in thousands) THREE MONTHS ENDED 2) ) Acquisition- 6) Additional a) related @) IRS TaxExmense Share-based Integration Interest Consulting (3) (Benefit) fom _Adiusted GAAP = Compensation Costs Costs Eee Amortizaion Prior Years Non-GAA
Slide 23: GAAP Reconciliation Q2 2016 Adjusted EBITDA
j2) | GAAP Reconciliation Q2 2016 Adjusted EBITDA ($ in thousands) THREE MONTHS ENDED JUNE 20.2016 Cloud Cloud iP Digital Connect Services Licensing Media {2 Global, inc. Total Revenues GAAP Revenues 902.858 48,509 $1,093 seo |S - $211,800 Gross Profit, GAAP Gross Prof $76,851 $34,485 $1,093 $63,780
Slide 24: GAAP Reconciliation Q2 2015 Adjusted EBITDA
j2) | GAAP Reconciliation Q2 2015 Adjusted EBITDA ($ in thousands) Revenues GAAP Revenues Gross Profit, GAAP Gross Profit Non-GAAP Adjustments: Share-based Compensation Acquistion Related Integration Costs Amortization Adjusted Non-GAAP Gross Profit Operating Profit GAAP Operating Profit Non-GAAP Ad
Slide 25: Global
Global